Bannerman Advances Etango Construction with CNOL JV Nearing Completion

Strategic Financing Nears Final Stages

Bannerman Energy Ltd (ASX:BMN) is closing in on a transformative milestone with the strategic financing transaction alongside CNNC Overseas Limited (CNOL), which will inject up to US$321.5 million into the Etango Uranium Project. The transaction, structured as a joint venture with CNOL acquiring a 45% stake in the project holding company, is expected to complete in Q3 2026 after progressive satisfaction of key conditions precedent, including regulatory approvals and shareholder consents.

This deal promises a debt-free construction pathway for Bannerman, reducing financial risk while securing a long-term offtake agreement for 60% of Etango’s production under market-based pricing terms. The partnership with CNOL, a subsidiary of China National Uranium Corporation, aligns Bannerman with a Tier-1 nuclear utility, enhancing the project's credibility and market access.

Early Works Construction Tracks to Plan

On the ground, Bannerman’s Etango site in Namibia is rapidly taking shape. Bulk earthworks are approximately 92% complete, with contractors focusing on critical infrastructure such as the freshwater pond, wet plant terraces, and the heap leach pad. Aggregate production for heap leach drainage has reached nearly 30% of total requirements, supporting future pad construction.

Concrete construction is advancing robustly across key dry plant infrastructure, including the primary crusher and secondary and tertiary crushing and screening facilities. Approximately 60% of the required concrete for Phase 1 and 2A works has been poured, with 10,800 cubic metres cast, signaling strong execution momentum. The project workforce exceeds 560 personnel, and the site has achieved over 1.1 million lost time injury-free hours, underscoring a strong safety culture.

Infrastructure and Utilities Progress

Infrastructure development is progressing in tandem, with a permanent water supply agreement signed with NamWater and pipeline installation about 87% complete. Power supply arrangements are also advancing, with a definitive power agreement in place and detailed design underway for a dedicated feeder bay at NamPower’s Kuiseb substation. Additionally, detailed design for the acid storage and handling facility at Walvis Bay port is approximately 69% complete.

Strong Financial Position and Market Fundamentals

Bannerman ended the quarter with a solid cash balance of A$53.1 million and liquid assets valued at A$11.5 million, including holdings in the Sprott Physical Uranium Trust. The company remains debt-free, maintaining disciplined expenditure with approximately A$69.3 million invested in early works to date.

Uranium market fundamentals continue to strengthen, with the long-term term price rising to US$97 per pound of U3O8 by quarter end. This contrasts with a relatively stable spot market, reflecting utility buyers’ focus on security of supply and counterparty reliability amid global nuclear energy expansion.

Offtake Strategy Balances Stability and Flexibility

Bannerman’s marketing approach balances revenue stability and price exposure by securing cornerstone offtake with CNOL for 60% of production, while retaining the remaining 40% for progressive placement with diversified counterparties. This measured strategy aims to optimise pricing opportunities as the uranium market evolves.

With detailed engineering nearing completion; civil and mechanical dry plant designs are approximately 94% done; and early works tracking to budget and schedule, Bannerman is positioning Etango for a positive Final Investment Decision shortly after the CNOL transaction closes.