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Bannerman Resources Edges Closer To Etango Heap Leach Results

Bannerman Resources (ASX:BMN,TSX:BAN) is approaching a key share price milestone with first test results from its Heap Leach Demonstration Plant at the Etango Project in Namibia expected in the third quarter.

The plant was officially opened in March 2015, coinciding with the likely demand growth as more countries push ahead with plans to increase their nuclear generation capacity.

Etango remains one of the very few globally significant uranium projects that can realistically be brought into production in the medium term, placing it in a position to capitalise on this growth.

The project is one of the largest undeveloped uranium deposits globally with Ore Reserves of 119 million pounds U3O8.

It is anticipated to produce between 7 million and 9 million pounds of U3O8 per annum initially when in production with a long mine life.

Notably, Etango is located 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.

In April, the company raised $407,500 after closing its Share Purchase Plan raising and placed the shortfall with the following investors:

- $860,000 from existing shareholder, Resource Capital Fund VI L.P. (RCF VI);
- $250,000 from existing shareholder City Natural Resources High Yield Trust PLC; and
- $482,500 in aggregate from the directors of Bannerman (also shareholders): Len Jubber ($400,000), David Tucker ($20,000) and chairman Ronald Beevor ($62,500).

This highlights the confidence the two major shareholders have in the company while aligning the interests of directors with those of shareholders.

Share purchases by directors and management as well as continued investment by substantial shareholders are usually a strong sign of upside in a stock.

Heap Leach demonstration program

The Etango heap leach demonstration program is a key step towards project de-risking, financing and possible development.

Initial testing will focus on demonstrating the Definitive Feasibility Study design and projected performance and will progress to value engineering in due course.

The upcoming results are also a major share price catalyst as success will de-risk Etango even further for financiers and investors and propel it further down the path to development.

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