Bannerman Energy (ASX:BMN) has finalised a multi-billion dollar strategic financing and joint venture agreement with CNOL, a subsidiary of the China National Nuclear.
The deal, announced early Friday, effectively de-risks the development of the flagship Etango Uranium Project in Namibia by securing a massive US$321.5 million investment.
Under the binding terms, CNOL will acquire a 45% stake in a newly formed joint venture, which will own 95% of the project.
CNOL has committed to providing debt-free construction funding, a rare and highly advantageous provision that eliminates the primary financing hurdles typically faced by emerging miners.
The partnership also cements long-term revenue visibility, with CNOL securing a 60% life-of-mine offtake entitlement.
While the Chinese utility giant takes the lion's share of production, Bannerman retains the flexibility to market its remaining 40% into the global spot and term markets at competitive, arm’s-length pricing.
The milestone follows a period of rapid operational progress; as of late January, early works at Etango were already 51% complete, bolstered by previous equity raises totaling $170 million.
With a target completion date of mid-2026, the focus now shifts to satisfying regulatory conditions from Chinese and Namibian authorities.
Once cleared, a final investment decision is expected promptly, paving the way for full-scale construction.
At the time of reporting, Bannerman Energy's share price was $3.71.