Bannerman Nabs Cash and New CEO
Bannerman nabs cash and new CEO
URANIUM explorer Bannerman Resources has appointed ex-Perilya boss Len Jubber as chief executive officer, and has also secured $A20 million in funding for its uranium projects in Namibia.
The company has appointed Jubber after the sudden departure of previous managing director Peter Batten in August.
Jubber served as CEO of Perilya from 2005 until March this year and held the chief operating officer role at New Zealand-based gold miner Oceana Gold for seven years.
A mining engineer, he also spent eight years working at the Rossing uranium mine in Namibia, only 20 kilometres from Bannerman's recently renamed Etango project.
The Perth-based company has also topped up its funding through a $20 million secured note facility with Resource Capital Funds IV.
Under the deal, Bannerman will draw down a minimum of $10 million and has the option of drawing down the further $10 million at any time during the six months following the first tranche.
The $10 million first tranche will be converted at A61.2c per Bannerman share, a 76.2% premium to the company's volume weighted average market price of 34.7c on November 17.
The pricing of the second tranche will be set either at 61.2c or a 20% premium to the Bannerman's 30-day VWAP at the time depending on whichever is lower, to a minimum price of 45c.
The facility has an 8% interest rate per year that Bannerman will need to pay quarterly, but this can be paid in shares rather than cash.
Resource Capital Funds will also be entitled to nominate a member to Bannerman's board.
The funds will go towards Bannerman's definitive feasibility study on the Etango project and boost the $9.7 million in cash the company had at the end of October.
Shares in Bannerman were last trading at 38.5c, up 6c or almost 19% on the news of the raising.
