The Etango uranium project. Source: Bannerman Energy
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  • Bannerman Energy (BMN) is set to take a 41.8 per cent stake in Canada-based critical minerals specialist Namibia Critical Metals (NMI) in a deal worth just under $9 million
  • Bannerman will pay $7.24 million in cash and issue 8.46 million shares to NMI as part of the investment, which represents a major discount to NMI’s current trading value on the TSX-V
  • The buy gives Bannerman exposure to NMI’s Lofdal heavy rare earths project in Namibia, which Bannerman says is highly complementary to its own Etango uranium project
  • Managing Director and CEO Brandon Munro says the Lofdal project is on a path to produce dysprosium and terbium — two of the most “strategically important” metals on the planet
  • Shares in Bannerman Energy last traded at 20 cents each on Wednesday, May 18

Uranium explorer Bannerman Energy (BMN) is set to take a major stake in Canada-based critical minerals specialist Namibia Critical Metals (NMI) in a deal worth just under $9 million.

Bannerman this morning said it would be purchasing a 41.8 per cent interest in NMI, which is listed on the TSX-V, for $7.24 million in cash and 8.46 million BMN shares.

The purchase will give Bannerman exposure to NMI’s flagship Lofdal heavy rare earths project in Namibia, which Bannerman said was highly complementary to its own Etango uranium project in the country.

The 41.8 per cent interest in NMI comprises just under 82.3 million NMI shares. Given NMI currently trades for around 20 Canadian cents (22 Australian cents) on the TSX-V, Bannerman’s $8.9 million price tag for its interest in NMI represents a discount of over $9 million to NMI’s market trading value.

Bannerman Managing Director and CEO Brandon Munro said the Lofdal project was on a path to produce dysprosium and terbium, which were two of the “most strategically important metals” on the planet.

“Our exposure to this future production, through a strategic shareholding in Namibia Critical Metals, is, therefore, a strong fit with Bannerman’s Etango project — a near-term supplier of uranium at a globally significant scale,” Mr Munro said.

“I have followed the Lofdal project and worked with its management since living in Namibia in 2010, and am personally delighted to formalise these strong in-country working relationships.”

The Lofdal project is also the subject of an earn-in deal with Japan Oil, Gas and Metals National Corporation (JOGMEC).

Bannerman said the price to be paid for its 41.8 per cent interest in NMI represented around 12 per cent of Bannerman’s cash balance and 0.6 per cent of its current issued shares.

Shares in Bannerman Energy last traded at 20 cents each on Wednesday, May 18.

BMN by the numbers
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