ASX-listed Bannerman Energy has secured a strategic financing and joint venture (JV) agreement with CNNC Overseas Limited (CNOL), paving the way for debt-free construction of its Etango uranium project in Namibia.

The agreement will see CNOL invest up to $321.5-million for a 45% interest in Bannerman Energy (UK) (JVCo), which owns 95% of the Etango project. The transaction establishes a long-term development and operating partnership with China National Nuclear Corporation (CNNC), which is one of the world’s biggest nuclear utilities.

Upon completion, underlying economic ownership of the Etango project will comprise 52.25% Bannerman and 42.75% CNOL, with Namibian social welfare organisation One Economy Foundation (OEF) retaining its 5% loan-carried shareholding.

The transaction follows a global financing process undertaken by Bannerman and is described by the company as its preferred funding solution, facilitating the highest forecast risk-weighted value outcome.

Under the agreement, Etango will be constructed on a debt-free basis, enhancing financial flexibility and reducing project execution risk. Bannerman and CNOL will fund post-completion capital expenditure and operating costs pro rata to their respective 55% and 45% equity interests in JVCo.

CNOL will purchase 60% of Etango’s uranium production under arm’s-length, market-based offtake terms, while Bannerman will independently market the remaining 40%.

Completion of the transaction is targeted for mid-2026 and remains subject to several conditions precedent, including approvals from relevant Chinese government authorities, CNUC shareholder approval, clearance from the Namibian Competition Commission, amendment to the OEF funding agreement and execution of key infrastructure supply contracts.

Commenting on the transaction, Bannerman executive chairperson Brandon Munro said the execution of the documentation represented the culmination of an "extensive Etango funding workstream" over the past two years.

"In short, we believe that this transaction delivers the optimised finance solution for the development of Etango and provides ideal support to our broader aspirations in the uranium business."