Mining industry-wide requirement ensures local firm a piece in Bannerman
Prospective uranium miner, Bannerman Resources Limited recently announced that it completed the Namibian Partner Transaction on the same terms as previously announced on 14 March 2017.
In a statement on the NSX platform last week, Bannerman Mining Resources Namibia (BMRN)welcomed the One Economy Foundation as a 5% shareholder in Bannerman Mining Resources, the the 100% holder of the Etango Uranium Project.
According to the statement, The One Economy Foundation will be loan carried for all future project expenditure including pre-construction and development expenditure, with the loan capital and accrued interest repayable from future dividends. Bannerman will own the remaining 95% stake.
The transaction fulfils an emerging industry-wide requirement for a minimum of 5% Namibian ownership. The satisfaction of this requirement was also a specific condition to the July 2016 renewal of Exclusive Prospecting Licence 3345 on which the Etango Uranium Project is situated.
In August 2016, BMRN engaged investment bank RMB Namibia to undertake a process to identify Namibian investors and broad-based beneficiaries to meet the 5% Namibian ownership requirement.
The One Economy Foundation emerged as the preferred broad-based beneficiary for its outstanding governance credentials, strong financial sophistication and long term funding outlook reflective of Etango´s financing dynamics.
Bannerman´s Chief Executive Officer, Brandon Munro, said, “The detailed process undertaken highlighted the One Economy Foundation as an ideal partner. In addition to social programmes that closely align with Bannerman´s CSR vision, the One Economy Foundation´s Board and management demonstrate exceptional leadership across all facets of the Namibian economy.”