Bannerman Resources Looks To Other Suitors

Australian uranium company Bannerman Resources Ltd. (BMN.AU) said Monday it is turning to other suitors as a A$143.5 million ($149.2 million) bid from China's Hanlong Mining looks set to drag on after a financier called for further due diligence.

Bannerman said it will now focus on existing discussions with other unnamed parties regarding "alternative corporate arrangements" and the development of joint ventures, although it has formally advised Hanlong that it is willing to consider a less conditional proposal.

"It is unlikely that Bannerman will know whether Hanlong is in a position to enter into a binding agreement with Bannerman within a timeframe that would meet the reasonable expectations of Bannerman's shareholders and other stakeholders, including the Namibian government," the company said in a statement to the Australian Securities Exchange.

Bannerman, which has interests in two uranium properties in Namibia, received a conditional takeover proposal from Hanlong in July and said late last month that the due diligence investigations were well progressed.

But it said that during recent negotiations in China it had been advised that China Development Bank, which was lined up to finance Hanlong's offer, required greater certainty regarding the timing and conditions of a mining licence.

Bannerman's key asset is its 80%-owned Etango project, southwest of Rio Tinto Ltd.'s (RIO) producing Rossing uranium mine.

Both Bannerman and Australian resources company Sundance Resources Ltd. (SDL.AU) had pushed ahead with takeover negotiations with Hanlong despite an investigation by the Australian Securities and Investments Commissions into suspected insider trading by former executives of Hanlong.

Sundance earlier this month said Hanlong saw no reason why it wouldn't secure regulatory approval for its A$1.36 billion ($1.41 billion) takeover.

Bannerman's shares ended the day 7.8% lower at A$0.295 against strong gains in the wider market.

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