Bannerman Energy Ltd. (ASX: BMN) has executed binding agreements with CNNC Overseas Limited (CNOL), a subsidiary of China National Nuclear Corporation, to fund and jointly develop its flagship Etango Uranium Project in Namibia. The transaction provides US$294.5 million in cash funding for a 45% interest in a newly formed joint venture vehicle, marking a pivotal step towards construction.
The Etango Uranium Project in Namibia, one of the world’s largest undeveloped uranium resources, is targeted for first production in 2028. [The Northern Miner]
The agreement establishes an incorporated joint venture (JVCo), owned 55% by Bannerman and 45% by CNOL, which will hold a 95% interest in the Etango Project. In addition to the subscription proceeds, Bannerman will receive reimbursement of up to US$27 million for agreed early work expenditure incurred from 1 July 2025 until completion.
Management described the deal as “transformational,” positioning Bannerman as a construction-funded uranium developer with strong leverage to future uranium price upside and a strategic partnership with a Tier-1 global nuclear group.
Key Transaction Highlights
- US$294.5 million cash subscription for 45% of JVCo.
- Up to US$27 million reimbursement for early works spent (45% share).
- A life-of-mine off-take agreement covering 60% of Etango’s uranium output.
- Market-based pricing structure linked to spot and term uranium price indices, with no price floors or ceilings.
- Debt-free funding pathway, with majority ownership retained by Bannerman (55%).
- Transaction completion targeted for mid-2026, subject to regulatory approvals.
The deal substantially addresses the estimated US$353 million pre-production capital requirement outlined in the Etango-8 Definitive Feasibility Study (DFS). Any residual funding requirement for Bannerman is expected to be modest relative to its existing corporate cash reserves.
Resource Base and Project Scale
Etango is regarded as one of the world’s largest undeveloped uranium deposits. The November 2021 JORC-compliant Mineral Resource Estimate underpins a globally significant inventory:
Mineral Resource Estimate (55ppm U₃O₈ cut-off):
- Measured: 32.4Mt at 201ppm for 14.3Mlb U₃O₈
- Indicated: 345.7 Mt at 195 ppm for 148.5 lb
- Inferred: 140.6Mt at 200ppm for 62.0Mlb
- Total: 224,9 Mlb U₃O₈
At a higher 100ppm cut-off:
- Total: 206.8 Mlb of U₃O₈ at 225 ppm
The Etango Ore Reserve stands at 59.9Mlb U₃O₈. Notably, 100% of the mineral resources scheduled for extraction in the DFS and associated scoping studies are classified as measured or indicated, enhancing project confidence.
Initial planned production is approximately 3.5 million lb per year, scalable to 6.7 million lb per year, positioning Etango among globally significant greenfield uranium developments.
Strategic and Economic Implications
The transaction occurs against a backdrop of strengthening long-term uranium fundamentals. Structural supply deficits, reactor life extensions, and new build programs across Asia, Europe, and North America continue to support forward pricing dynamics.
By linking 60% of production to arm’s length, index-based pricing, Bannerman maintains exposure to spot and term market upside while securing a cornerstone customer in CNOL. The agreement includes favorable payment and delivery terms, expected to reduce working capital intensity.
Executive Chairman Brandon Munro stated that the transaction embeds Bannerman as “a construction-funded, strongly price-leveraged, and strategically partnered production business for the long term.” He described the deal as a validation of the technical and economic robustness of Etango.
Governance and Funding Structure
Under the Shareholders Agreement:
- Bannerman appoints three of the five JVCo directors.
- Key strategic decisions, including the Final Investment Decision (FID) and expansion plans, require unanimous approval.
- Funding obligations are proportionate (55% Bannerman / 45% CNOL).
- Standstill and confidentiality provisions apply.
A Steering Committee has been formed to oversee development milestones, chaired by Bannerman CEO Gavin Chamberlain.
Conditions precedent include regulatory approvals in China and Namibia, infrastructure contract execution, and customary approvals. The long stop date is 30 September 2026.
Development Timeline
- The early works program is continuing through H1 2026.
- Transaction completion targeted mid-2026.
- Final investment decision anticipated in H2 2026.
- Full-scale construction to commence in H2 2026.
- First uranium production targeted for 2028.
Market Context: Structural Uranium Supply Deficit
Global nuclear generation capacity remains central to decarbonisation strategies, particularly in China, where CNNC operates 27 commercial reactors and has 18 units under construction or approved. CNNC also holds interests in Namibian uranium operations, including Rössing and Husab.
Global uranium supply deficit forecast 2022 to 2030 showing production below requirement [Reuters]
Etango’s Namibian location offers geopolitical stability and an established uranium mining framework, further strengthening its development profile.
Corporate Snapshot
As at 11 February 2026:
- Share price: A$3.95
- Market capitalisation: approximately A$820 million
- Shares on issue: 207.7 million
- Cash (31 December 2025): A$89 million
- Debt: Nil
Bannerman Energy Ltd Share Price [ASX]
The funding transaction materially reduces development risk while preserving majority ownership and exposure to uranium price upside.
With binding financing, strategic offtake, and a globally significant resource base, Bannerman Energy has advanced Etango from a feasibility-stage developer towards funded construction status, positioning the company to participate directly in the next phase of the uranium supply cycle.
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FAQs
Q: What is the Etango Uranium Project?
A: The Etango Uranium Project is a large-scale uranium development project located in Namibia. It is owned by Bannerman Energy and hosts a JORC-compliant mineral resource of approximately 224.9 million pounds of U₃O₈ at a 55 ppm cut-off grade. The project is fully permitted and progressing toward construction.
Q: How much uranium will Etango produce?
A: Etango is planned to initially produce around 3.5 million pounds of U₃O₈ per annum. The project has scalability potential to expand production to approximately 6.7 million pounds per annum, depending on market conditions and expansion decisions.
Q: What is the significance of the CNNC partnership?
A: The agreement with CNNC Overseas Limited provides US$294.5 million in funding for a 45% joint venture interest. It also includes a life-of-mine offtake agreement for 60% of production. The partnership reduces financing risk and secures a strategic customer within the global nuclear fuel chain.
Q: Why is uranium demand increasing?
A: Uranium demand is rising due to global decarbonisation policies, nuclear reactor life extensions, and new reactor construction programs, particularly in China, Europe, and parts of North America. Nuclear power is considered a low-emission baseload energy source.
Q: Is there a global uranium supply deficit?
A: Industry forecasts indicate that uranium demand is expected to exceed primary mine supply through the remainder of the decade. This projected supply deficit is supporting long-term uranium price fundamentals.
Q: When is Etango expected to begin production?
A: Bannerman is targeting a final investment decision in the second half of 2026, with construction commencing shortly after and first uranium production anticipated in 2028.
Q: Where is Namibia in global uranium production?
A: Namibia is one of the world’s largest uranium-producing countries and hosts several major operations. It has an established regulatory framework and a long history of uranium mining.
