Bannerman Energy managing director and chief executive officer Gavin Chamberlain says the company expects a final investment decision on its Etango Uranium Project later this year after securing a Chinese-backed funding solution that provides a debt-free path to construction and a cornerstone buyer for 60% of future production.
The CNNC Overseas Limited transaction is targeted for completion in mid-2026, subject to remaining regulatory and contractual conditions, with Bannerman guiding that a positive final investment decision is expected shortly thereafter and during the second half of 2026.
The agreement will see CNNC Overseas invest up to US$321.5 million for a 45% interest in Bannerman Energy (UK) Ltd, the holding company that owns 95% of the Etango project in Namibia.
“A transformational milestone during the quarter was the announced project funding solution through a strategic partnership with CNNC Overseas Limited.
This transaction provides a clear, debt free pathway to development and an expected Final Investment Decision later this year. Put simply, it is the final piece that unlocks the development and operation of the Etango Project,” Chamberlain said.
Bannerman will retain a 55% stake in the joint venture, equating to an underlying 52.25% economic interest in Etango, while Namibia’s One Economy Foundation will continue to hold a 5% loan-carried shareholding.
Despite the incoming strategic investor, Bannerman will remain in control of the venture through majority ownership and the right to appoint three of five board directors, as well as three of five key executive management positions including chief executive officer at operating company level.
The company said the structure removes the need for anticipated commercial debt during construction and ramp-up, materially reducing project risk while preserving corporate flexibility.
Each shareholder will fund future capital expenditure and operating costs pro rata to their 55% and 45% interests.
Under the offtake arrangement, CNNC Overseas will have life-of-mine rights to purchase 60% of actual uranium production from Etango under market-based pricing linked to a combination of spot and long-term uranium price indices. Bannerman will independently market the remaining 40% of output.
Completion of the transaction remains subject to several conditions, including clearance from the Namibian Competition Commission, Chinese regulatory filings, amendments to the One Economy Foundation funding agreement and execution of key Etango infrastructure supply contracts.
Bannerman said all conditions must be met or waived by 30 September 2026 unless extended by mutual agreement.
At site level, Bannerman said approximately A$53.61 million had already been spent on Etango early works by 31 March, with a further A$31.4 million committed.
All major workstreams remain aligned with the targeted second-half 2026 investment decision.
The contractor workforce has risen to more than 560 personnel across four Namibian contractors — Namibbeton, K Neumayer Civil Contractors, Tulela Mining and Construction and AN Construction — while the project has achieved 500,000 lost-time-injury-free hours.
Bulk earthworks were 66.5% complete at quarter-end, with the main focus on heap leach pad construction and wet plant terraces. Production of drainage aggregate for the heap leach facility had reached approximately 24% of total requirements.
Bannerman also reported that 5,509 cubic metres of concrete had been poured across the primary crusher, stockpile tunnel and fine ore silo packages, representing roughly 32% completion for those contracts.
Long-term utilities infrastructure is also progressing. Phase 1 of the permanent water supply pipeline was about 70% complete and ahead of schedule, while Bannerman confirmed it had signed a definitive power supply agreement with NamPower.
The lease agreement for the acid storage and handling facility at Namport in Walvis Bay has also been signed.
Bannerman ended March with A$69.9 million in cash and A$12.7 million in liquid assets. It also holds approximately 101.3 million shares in Namibia Critical Metals Inc., valued at around A$30.1 million at quarter-end.
The company said the long-term uranium price rose US$6 during the quarter to US$93/lb by 31 March, while spot prices moved between US$82/lb and US$101.50/lb before closing at US$84.50/lb.
Etango is located in Namibia’s Erongo Region, one of the world’s premier uranium districts and home to producing operations including Rössing Uranium, Husab Mine and Langer Heinrich Mine.
Bannerman’s definitive feasibility study outlined average annual production of 3.5 million pounds U3O8 under the Etango-8 development case, with later studies indicating potential expansion to 6.7 million pounds annually.
