Namibian uranium developer Bannerman Resources (ASX:BMN, TSX:BAN, NSX:BMN) has raised A$1.75 million at $0.052 per share that included A$860,000 from current shareholder Resource Capital Fund VI L.P.
The funds will be used to operate the Heap Leach Demonstration Plant recently constructed by Bannerman at the 80% owned Etango Uranium Project. The project is one of the largest globally undeveloped uranium deposits.
Notably, first test results from the demonstration plant are due in the June 2015 quarter and should provide a barometer of progress and also be watched closely by potential joint venture partners and investors.
The timing of the demonstration plant's first test results is likely to be advantageous given the tick up in global activity in the uranium sector.
Last week, India announced it would acquire 3,220 metric tonnes of uranium concentrate for the Indian nuclear power reactors from Cameco Corp.
In addition, Etango is located in Namibia near to Rio Tinto's (NYSE:RIO) Rössing uranium mine, Paladin Energy's (NYSE:PDN) Langer Heinrich uranium mine and CGNPC's Husab uranium mine - under construction.
As part of the capital raising, a Share Purchase Plan closed on 14 April 2015 and raised A$407,500.
Under a shortfall agreement, the extra shares subscribed for will see RCF VI add to its existing 17.7% shareholding.
Three directors of Bannerman will also subscribe for shares worth A$482,500, namely non executive chairman Ronnie Beevor, chief operating officer Len Jubber and non executive director David Tucker.
This will be subject to shareholder approval. The SPP and shortfall placements were conducted at an issue price of A$0.052 (C$0.049) and would result in Bannerman issuing 38,461,538 fully paid ordinary shares.
A definitive feasibility study for Etango confirmed the technical, environmental and financial viability of Etango at consensus long term uranium prices.
This was based on a large open pit and heap leach operation.
Bannerman's chief executive Office, Len Jubber, said today:
"The operation of the Demonstration Plant and the timing of the first test results in the June 2015 quarter coincides with the resurgence in the nuclear renaissance as is evidenced not only by the growing reactor development program in China.
"In addition it coincides with the landmark long term offtake agreement concluded this week between India's Department of Atomic Energy and Cameco Corporation.
"That transaction is noteworthy because it highlights an increase in term trading activity and also the growing demand for uranium coming from the most populous nation in the world.
"Bannerman's advancing Etango Project remains one of the very few globally significant uranium projects that can realistically be brought into production in the medium term."
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