Bannerman Energy Limited (ASX: BMN) (OTCQX: BNNLF) (NSX: BMN) announced the acquisition of the Mining Licence (ML) for its flagship Etango Uranium Project in Namibia.
The Australian miner said Friday it also successfully awarded initial contracts for the early works program associated with the Etango project. The Namibian Ministry of Mines and Energy officially delivered the grant notification. It also signed ML 250 documentation to Bannerman, with all accompanying conditions deemed customary.
This significant milestone empowers Bannerman to promptly proceed with the award of two critical early works contracts for Etango. The contracts involve construction of a temporary water supply and the site access road.
The temporary construction water pipeline aims to ensure an ample water supply for onsite activities, particularly during the main earthworks and civil contracts. The access road will facilitate controlled entry to the mine site. This will minimize the impact on the surrounding environment right from the initiation of full-scale construction.
The combined value of these contracts is approximately N$36 million (approx. US$2 million). They were successfully secured through a tender process conducted earlier this year. The contracts are now entrusted to a local Namibian contractor, aligning with Bannerman’s commitment to supporting the local economy.
“This moment is the culmination of our unwavering focus on Etango since our initial investment in 2006,” Bannerman CEO Brandon Munro said. He stressed the company’s conviction and role in establishing “nuclear power for a better world.
“I am grateful to the Ministry of Mines and Energy for their ongoing commitment to Etango’s success.”
We are pleased to announce that the Mining Licence for our flagship Etango #Uranium Project in #Namibia has been granted 🥳🇳🇦 A milestone event as our project is now fully permitted & shovel ready⚒️⚛️ Read the full announcement here: https://t.co/ftMepkFzPt $BMN $BNNLF pic.twitter.com/NL5ZHoqlv8
— Bannerman Energy (@BannermanEnergy) December 14, 2023
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The swift award and start of these early works contracts are crucial for Bannerman to uphold the current target construction schedule for Etango. Bannerman’s existing cash holding, which stood at approximately A$37.3 million as of November 30, will finance the contracts.
This development marks a significant stride forward for Bannerman Energy, as it solidifies its position in advancing the Etango Uranium Project. The company remains dedicated to responsible and sustainable development, contributing not only to its stakeholders but also fostering positive impacts on the local Namibian community.
Bannerman’s COO Gavin Chamberlain said the construction schedule remains on track.
“I am delighted that we have awarded the first contracts on Etango to a Namibian construction services business,” Chamberlain said. “Namibia is an ideal place to build and operate a uranium mine.
“I look forward to the next phases of building a uranium business that will deliver significant and long-lasting benefits to all of our key stakeholders, including the Namibian economy and people.”
Namibia possesses extensive uranium deposits. Some of the world’s largest and highest-grade uranium mines are situated within its borders. The geology of Namibia’s uranium-rich regions is conducive to the formation of economically viable uranium deposits. These regions include the Namib Desert and the Erongo Region, among others.
