Site activities are expected to start by end of September 2014 with construction due to be completed by early 2015.
Bannerman secured the environmental clearance for the project from the Ministry of Environment and Tourism.
The company said the plant, which will operate for about an year, will allow demonstration of the heap leach design at a larger scale to investors and financiers.
It will offer input information for the detailed engineering of the processing plant with initial results expected in the June quarter.
Bannerman chief executive officer Len Jubber said: "The commitment to the Etango heap leach demonstration plant program, with the support of our major shareholder RCF via the investment from their recently established Fund VI, will enable maintaining our early mover advantage and ability to fast track the development of the Etango project in a rising uranium price environment."
Bannerman owns 80% of the Etango uranium project in Namibia, Southern Africa.
The company completed a definitive feasibility study in April 2012, paving way for the production.
Image: Etango Heap Leach demonstration plant layout. Photo: Courtesy of Bannerman Resources.
