Bannerman Says Financing Will Help Complete Namibia Study

Takeover target Bannerman Resources Ltd. (BMN.AU) has received commitments to raise A$8.2 million (US$8.1 million) through an equity placing.

It will also refinance debt as part of the share placement, and has made a provision for existing shareholders to subscribe to an additional A$4 million of equity, the Australian uranium explorer said overnight Wednesday.

Chief Executive Len Jubber said the financing gives the company a solid basis for completing a definitive feasibility study on the Etango uranium project in Namibia, southwest of Rio Tinto Ltd.'s (RIO) Rossing uranium mine and Extract Resources Ltd.'s (EXT.AU) Husab uranium project, which too has attracted bid interest.

"The capital raising in these globally uncertain financial times highlights the strategic significance of Etango, which will shortly be one of the very few large and independently-owned uranium projects," Jubber said.

Perth-based Bannerman said it received subscriptions from institutional shareholders for about 36.5 million shares at an issue price of A$0.225 a share.

Resource Capital Funds, a major shareholder that holds a A$10 million convertible note, subscribed for A$2 million in the share placement, which will be used to reduce the note.

The company said it also will provide shareholders with up to A$15,000 worth of new shares at the same price as the share placement.

The feasibility study on Bannerman's 80%-owned Etango project is due to be completed by the end of March.

Bannerman, which took its name from Australian cricketing legend Charles Bannerman, turned in October to other potential partners as a A$144 million bid from China's Hanlong Mining looked set to drag on after a financier called for further due diligence.

It said at the time it would consider a less conditional proposal, but would focus on discussions with other unnamed parties regarding joint ventures and other arrangements.

Hanlong made a conditional offer in July and had pushed ahead with negotiations despite an investigation by the Australian Securities and Investments Commission into suspected insider trading by former executives of Hanlong.

However, in October, China Development Bank, which was lined up to finance Hanlong's offer, said that it required greater certainty regarding the timing and conditions of a mining licence for Bannerman in Namibia.

-By Robb M. Stewart, Dow Jones Newswires; [phone]; [e-mail]