By Hilary Mare
BANNERMAN Resources Limited has completed the Namibian Partner Transaction deal that sees the One Economy Foundation secure 5 percent shareholding in Bannerman Mining Resources, which is a 100 percent shareholder in the Etango Uranium Project.
The company has signed the transaction on the same terms as previously announced on 14 March.
The One Economy Foundation will be loan-carried for all future project expenditure, including preconstruction and development expenditure, with the loan capital and accrued interest repayable from future dividends. Bannerman Resources Limited owns the remaining 95 percent of Bannerman Mining Resources.
The transaction fulfils an emerging industry-wide requirement for a minimum of 5 percent Namibian ownership.
The satisfaction of this requirement was also a specific condition for the July 2016 renewal of Exclusive Prospecting Licence (EPL) 3345 on which the Etango Uranium Project is situated.
In August 2016, Bannerman Mining Resources engaged investment bank, RMB Namibia, to undertake a process to identify Namibian investors and broad-based beneficiaries to meet the 5 percent Namibian ownership requirement.
The One Economy Foundation emerged as the preferred broad-based beneficiary, because of its outstanding governance credentials, strong financial sophistication and long-term funding outlook, reflective of Etango’s financing dynamics.
Bannerman´s Chief Executive Officer, Brandon Munro, said, “The detailed process undertaken highlighted the One Economy Foundation as an ideal partner. In addition to social programs that closely align with Bannerman´s corporate social responsibility (CSR) vision, the One Economy Foundation’s board and management demonstrate exceptional leadership across all facets of the Namibian economy.”
The One Economy Foundation is a Namibian welfare organisation that concerns itself with the dual economy in Namibia, where one economy is prosperous and urban, with ready access to a developed economic, physical and technological infrastructure, while the other is informal, township-based or rural, and lacks access to the networks, technology and the capital required to succeed in the first economy.
Once developed, Etango will be a very large, long-life uranium mine, thus providing the foundation with a long-term source of income, to implement sustainable social development projects.
Bannerman non-executive director Twapewa Kadhikwa said, “It is a huge privilege to join hands with the One Economy Foundation as a long-term equity partner in Bannerman’s Etango project. The foundation’s mission, approach and energy are closely aligned with Bannerman’s outstanding record, as a leader in corporate social responsibility.”
One Economy Chief Executive Officer, Uajorokisa Akwenye, said, “The Etango project has the potential to be a significant driver for positive development in economy, and it is exciting to have the One Economy Foundation’s objectives aligned with its long-term success. I am immensely proud of the vision and approach that the One Economy Foundation has developed, and I am delighted that Bannerman has endorsed our approach, with this partnership.”
Bannerman recently commenced with a definitive feasibility study update at Etango. The study update commencement follows the successful completion of the Etango heap leach demonstration plant program.
The six phase demonstration plant program showed the strong potential to achieve and exceed the standing definitive feasibility study metallurgical parameters. This will occur in parallel with the assessment of other potential operating and capital cost-reduction opportunities.
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