One Economy gets 5% shareholding in Bannerman’s Etango Uranium Project
Bannerman Mining Resources, the owner and operator of the Etango Uranium Project near Swakopmund, this week announced it has given 5% of its shareholding to the One Economy Foundation.
This transfer is not a donation but a form of corporate social investment. Future dividends will pay for the shares
Bannerman stated this week it had asked investment bankers, RMB Namibia earlier to identify both charitable and financial investors in the Etango Project, culminating in the partnership with the One Economy Foundation. ENS Africa were the legal advisors to the transaction.
“Growth in the mining sector is critical to economic and social development. Therefore, I applaud this partnership between Bannerman Resources and the One Economy Foundation as a strong example of how the benefits of mining can be used to achieve our aim of Social Progression across all sectors of our society,” stated Hon Obeth Kandjoze, the Minister of Mines and Energy.
The One Economy Foundation is a Namibian Welfare Organisation that concerns itself with the dual economy in Namibia, where one economy is prosperous and urban, with ready access to a developed economic, physical and technological infrastructure while the other is informal, township-based or rural and lacks access to the networks, technology and capital required to succeed in the first economy.
Under the terms of the agreement, Bannerman Mining Resources (Namibia) will issue 5% of its ordinary share capital to the One Economy Foundation for par value. The One Economy Foundation will be loan carried for all future project expenditure including pre-construction and development expenditure, with a proportion of future dividends used to repay the loan and the balance providing cash to fund the foundation’s activities.
Mr Werner Ewald, Bannerman’s Managing Director, said “Since 2006, Bannerman has invested N$600 million developing its Etango Project, so a 5% shareholding has an immediate and substantial value. By providing this shareholding at par value (effectively free) Bannerman is demonstrating its strong endorsement and belief in the One Economy Foundation and what it can achieve in the longer term.”
Once developed, Etango will be a very large, long-life uranium mine, thus providing the Foundation with an opportunity for a long-term source of income to implement sustainable social development projects.
Ms Twapewa Kadhikwa, a Non-Executive Director of Bannerman said, “It is a huge privilege to join hands with the One Economy Foundation as long-term equity partners in Bannerman’s Etango Project. The Foundation’s mission, approach and energy are closely aligned with Bannerman’s outstanding record as a leader in corporate social responsibility.”
The foundation’s Chief Executive Officer, Uajorokisa Akwenye, said, “The Etango Project has the potential to be a significant driver for positive development in economy and it is exciting to have the One Economy Foundation’s objectives aligned with its long-term success. I am immensely proud of the vision and approach that the One Economy Foundation has developed and I am delighted that Bannerman has endorsed our approach with this partnership.”