Bannerman secures Chinese nuclear giant as partner for Etango

Bannerman Energy has announced a strategic partnership with CNNC Overseas Limited, a subsidiary of Chinese state nuclear company CNNC, to fund construction of its Etango uranium mine in Namibia, a deal the company said removes the final obstacle to full-scale development.

Under the agreement, CNNC Overseas Limited (CNOL) will invest up to US$321.5 million (N$5.4 billion) for a 45% stake in Bannerman Energy (UK) Ltd, the British subsidiary that owns 95% of the Etango Project. The structure gives Bannerman an effective economic ownership of 52.25% of Etango, with CNOL holding 42.75% and the Namibian social welfare organisation One Economy Foundation retaining a 5% loan-carried shareholding.

The transaction is designed to allow Etango to be built without debt, an approach Bannerman said offers greater financial and offtake flexibility while reducing risk. Both partners will fund future capital expenditure and operating costs in proportion to their respective 55% and 45% equity interests in the joint venture.

As part of the arrangement, CNOL will purchase 60% of Etango's uranium production on market-based, arm's-length terms, providing what Bannerman described as a cornerstone offtake agreement with a tier-one customer.

Bannerman CEO Gavin Chamberlain said the deal was the decisive development the project had been waiting for.

"This transaction provides a clear, debt-free pathway to development and an expected Final Investment Decision later this year," Chamberlain said. "Put simply, it is the final piece that unlocks the development and operation of the Etango Project."

Transaction completion is targeted for mid-2026, pending satisfaction or waiver of all conditions precedent. A Final Investment Decision is expected promptly thereafter.

Construction activity at the Etango site continued through the quarter. The site workforce has grown to more than 560 personnel and has logged over 500,000 hours without a lost-time injury. Bulk earthworks are approximately 66.5% complete, with the heap leach pads and wet plant terraces the primary focus.

Concrete pouring for the primary crusher, stockpile tunnel and fine ore silo stands at 32% of the volume planned for those packages, while Phase 1 of the permanent water supply pipeline is approximately 70% complete.

The uranium term price rose to US$93 per pound of U3O8 by quarter end. Chamberlain said long-term market fundamentals continued to strengthen, with policy support translating into reactor life extensions, restarts and new-build commitments globally.