Bannerman shares slump after discounted placement
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The news: Shares in Bannerman Energy have slumped after a share placement by the uranium explorer was priced at a hefty discount.
The numbers: Bannerman said it had received firm commitments for $85 million in a two-tranche placement at $3.30 a share, a discount of a 7.8% discount to its last closing price on 25 June at $3.46.
Shares in the company slumped 9% to $3.26 on resumption of trading early on Friday.
The context: The funds raised will be used for the development of the company’s Etango-8 uranium project in Namibia.
The Perth-based Bannerman is developing Etango within Namibia’s established uranium-mining district and says the deposit is one of the world’s largest untapped uranium resources.
It has started design work and early construction at the site and expects to take a final investment decision in the second half of 2024.
The source: ASX announcement
