Bannerman Energy has secured firm commitments to raise approximately A$85m ($56.54m) through a two-tranche placement of new shares.

This funding is earmarked for the advancement of the company's Etango-8 project, which includes detailed design and early construction works.

The first tranche will see the issuance of 22,927,010 new shares, generating around A$75.7m.

Pending shareholder approval, the second tranche will contribute an additional A$9.3m through the issuance of 2,830,765 new shares.

The capital raised will be allocated to Etango-8’s detailed design work, early construction infrastructure, earthworks and procurement of selected long-lead items. It will also meet general working capital needs.

The new shares are priced at A$3.30 each and offered to a mix of new and existing institutional and sophisticated investors.

Bannerman executive chairman Brandon Munro said: “Proceeds from this placement will enable us to further progress our Etango-8 project, following positive outcomes from the recently announced front end engineering and design (FEED) and control budget estimates (CBE) processes, which confirmed the high quality of technical evaluation and design from the December 2022 definitive feasibility study (DFS).

“We have commenced detailed design work and early works construction, and the placement will enable us to advance further works including the procurement and manufacturing of select long-lead items, product marketing and project financing activities. These activities are all directed towards advancing Etango to a targeted positive final investment decision (FID) during H2 2024.

“We are excited by the support that we have received from investors for both our Etango-8 development pathway and the approach the company has taken to stewarding this asset into the rapidly strengthening uranium market environment. I would also like to welcome our new shareholders through the raising and look forward to building a strong relationship with them.”