Bannerman plans production by 2011

With questions over the ability of juniors to bring on new supply seen as a significant factor in continuing high uranium prices, Bannerman Resources (BAN-T, BMN-A) is looking to distinguish itself from the crowd.

To better position itself to do so, the Australian-based exploration junior has added to the equity side of its balance sheet with a new offering and a new listing.

In March, the company announced it would follow a growing trend of active western companies in Namibia by listing on the country’s young stock exchange. Its shares began trading on the exchange in April.

Of more immediate significance to its bottom line, however, was the announcement that it had sold 10.5 million ordinary shares for $2 apiece for gross proceeds of $21 million.

The company says the money will go into its key uranium project — Goanikontes in Namibia — as well as towards other exploration costs and for working capital and general corporate purposes.

In Toronto at presstime, Bannerman shares were trading at $1.73. The company has 138 million shares outstanding and its share price has fluctuated from $1.30-3.72 over the last 52 weeks.

The company is banking on its projects in Namibia and Botswana to catapult it to uranium producer status by 2011. It also has an interest in a uranium project in Australia.

Its Goanikontes project sits on a trend southwest of Rio Tinto’s (RTP-N, RIO-L) Rossing uranium mine. A bankable feasibility study is planned for this year.

In March, the company announced drill results from Goanikontes highlighted by 78 metres at 216 U308 parts per million (ppm), 74 metres at 413 U308 ppm and 71 metres at 269 U308 ppm.

Those results come from a drill program aimed at drilling a first resource for the project.

Bannerman says 320 reverse-circulation holes totalling 90,000 metres have been drilled. Two diamond-drill rigs are also currently at work putting 34 holes into the ground for 13,000 metres. Results from the diamond-drilling program will find their way into the final resource estimate, Bannerman says.