The deal was called off after the companies could not reach a common acceptable agreement regarding the commercial substance of the term sheet.
Epangelo, under the term sheet, could own 5% initially in the Bannerman’s 80% owned subsidiary which owned the Etango uranium project, and had an option to own another 5% later.
The term sheet also required Epangelo to fulfill certain conditions which included completion of due diligence investigations and securing acquisition finance which the company successfully achieved.
Etango uranium project with a completed definitive feasibility study is expected to produce about 7-9 million pounds of U3O8 annually for the first five years and around 6-8 million pounds every year henceforth.
The life of the project is calculated to be a minimum of 16 years with good potential for expansion via converting the existing the inferred resource and through new drilling underway targeting a mine life in excess of 20 years.
Bannerman said in a statement that the company will continue to look for local and international project development partner to provide its shareholders a fair value.
Epangelo Mining Company is a Namibian state-owned mining company where as Australia based Bannerman Resources is a uranium development company.
