Under the agreement, CNNC Overseas Limited (CNOL) – a subsidiary of China National Uranium Corporation (CNUC) and part of China National Nuclear Corporation (CNNC) – and Bannerman will form an incorporated joint venture. This will be done through Bannerman’s UK subsidiary, Bannerman Energy (UK) Ltd (JVCo), by way of CNOL’s subscription for newly issued shares in JVCo, resulting in JVCo ownership of 55% by Bannerman and 45% by CNOL upon completion. JVCo holds a 95% interest in the Etango Project. CNOL will make an initial investment of USD294.5 million into JVCo upon completion.
The agreement includes a provision for additional investment by CNOL of up to USD27 million upon completion, to reimburse Bannerman for CNOL’s 45% share of project-related expenditure incurred between 1 July 2025 and completion. Bannerman and CNOL will each fund post-completion capital expenditure and operating costs of JVCo and the Etango Project pro rata to their respective 55% and 45% equity interests. The agreement also includes a life-of-mine offtake entitlement for CNOL covering 60% of actual production from Etango.
Upon completion, underlying economic ownership of the Etango project will comprise 52.25% Bannerman and 42.75% CNOL, with Namibian social welfare organisation One Economy Foundation (OEF) retaining its 5% loan-carried shareholding.
Bannerman said the agreement “enables debt-free construction of Etango mine – a financing pathway that delivers greater financial and offtake flexibility and with reduced risk”.
The transaction is targeted for completion in mid-2026, pending key conditions including filings with the relevant Chinese government authorities and foreign exchange registration, CNUC shareholder approval, clearance from the Namibian Competition Commission, amendment to the OEF funding agreement, and execution of key infrastructure supply contracts.
“The execution of this documentation represents the culmination of the extensive Etango funding workstream we have undertaken over the past two years,” said Bannerman Executive Chairman Brandon Munro. “In short, we believe that this transaction delivers the optimised finance solution for the development of Etango and provides ideal support to our broader aspirations in the uranium business.
“By enabling the debt-free construction of Etango, this solution maximises flexibility and dramatically derisks the construction and ramp-up phases of project execution. It also delivers us a Tier-1 cornerstone offtake partner on genuine and market terms, ensuring Bannerman remains strongly exposed to future uranium price upside potential. Importantly, the residual 40% of Etango offtake will be independently marketed by Bannerman, with strict confidentiality ring-fencing arrangements in place, and strengthened by the flexibility embedded in the cornerstone offtake with CNOL.”
Feng Li, vice president of CNUC, added: “Amidst a global resurgence in nuclear energy and the rapid advancement of China’s nuclear power sector, CNNC group, as a cornerstone supplier of natural uranium, will bring both its distinguished heritage and technical strength to this joint venture … We are confident that the synergy created between our technical capabilities, uranium demand profile, operational experience, and Bannerman’s expertise and insight in the industry will position Etango to evolve into the next successful uranium mine in Namibia.”
Etango is in Namibia’s Erongo uranium mining region, which hosts the operating Rössing (in which CNUC holds a 68.62% stake), Langer Heinrich and Husab uranium mines. The proposed Etango mine received environmental approval in 2010 and the Namibian Ministry of Mines and Energy in 2017 granted Bannerman a five-year, extendable, mineral deposit retention licence over the project. Namibia’s Ministry of Mines and Energy granted Bannerman Energy a mining licence for Etango in December 2023.
