Bannerman Energy has secured two binding offtake agreements with leading North American utilities for the sale of uranium from its Etango Uranium Project in Namibia.
The contracts, which extend from 2029 to 2033, will see the sale of a total of one million pounds (mlb) of uranium, with options for annual up or down adjustments of 10%.
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The agreements involve two Fortune 500 energy providers, known for their extensive power generation capabilities and investment-grade credit ratings.
Structured with base price and escalation clauses tied to the US GDP Implicit Price Deflator (GDP-IPD), the price provisions will become active in the fifth year of the term.
Each agreement is contingent upon a standard condition precedent, including obtaining the required regulatory approvals for the sale of uranium as stipulated in each contract.
Bannerman Energy CEO Gavin Chamberlain said: “The signing of these limited, select offtake agreements (the first for Bannerman) with high-quality utility counterparties represents a further important step in our systematic advancement of Etango towards a targeted final investment decision.
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By GlobalData“We are able to demonstrate to potential customers a strong foundation for confidence in our ability to meet future supply commitments. In combination with growing global nuclear demand and ongoing tightening in uranium markets, this further reinforces our position as a strategic, long-term supplier to major utilities.”
The company’s phased development approach for Etango also ensures that sales and marketing efforts are in sync with both project progression and financial planning.
This allows Bannerman Energy to adapt to market changes while positioning itself as a preferred supplier in the global uranium sector.
In July 2024, Bannerman Energy raised approximately A$85m ($56.54m) through a share placement to fund the advancement of the Etango-8 project.
