THE BOURSE WHISPERER: Bannerman Resources has closed a recent oversubscribed Share Purchase Plan raising the maximum proceeds of $4 million in the process through the issue of approximately 17.8 million new Bannerman shares at an issue price of 22.5 cents (or the Canadian dollar equivalent of 23.3 cents) per share.
Further demand from institutional investors has resulted in the company agreeing to place a further eight million new Bannerman shares at the SPP offer price to a number of existing institutional shareholders in Australia, Asia and the UK, to raise gross proceeds of $1.8 million.
The combination of these transactions plus a $8.2 million share placement Bannerman completed in December last year and the recently announced extension of its existing $8 million convertible note (subject to shareholder approval to be sought at a meeting in March 2012), conclude Bannerman’s current financing activities.
New equity raised by Bannerman in the last two months now totals gross proceeds of $14 million.
Bannerman said the proceeds from its recent financing transactions will be used to fund completion of a Definitive Feasibility Study on its 80 per cent-owned Etango uranium project in Namibia, as well as confirmatory pilot plant testwork, regional exploration and drilling, and general working capital.
The company has already used $2 million of the proceeds to reduce its existing convertible note from $10 million to $8 million.
“The strong support shown by the company’s existing retail and institutional shareholders during a difficult period in the capital markets is very encouraging,” Bannerman Resources chief executive officer Len Jubber said in the company’s announcement to the Australian Securities Exchange.
“We’re looking forward to completion of the DFS in March 2012 at which time Etango will be one of the largest uranium projects at this stage of development held outside of the major uranium producers and nuclear power utilities. Bannerman is well positioned to benefit from the growing demand for secure, low risk and long life uranium supplies.”