Bannerman Resources Collects 20mn and a CEO

Bannerman Resources (ASX:BMN; TSX:BAN) has appointed Mr Len Jubber as Chief Executive Officer of the Company, effective immediately. As a consequence Mr Clive Jones will stand down as Interim Managing Director and remain as a Director of the Company.

Mr Jubber was Managing Director and Chief Executive Officer of Perilya Limited from May 2005 to March 2008. He also worked for seven years with Oceana Gold Limited, ultimately becoming Chief Operating Officer and an Executive Director of the company.

Prior to Oceana Gold, Len spent eight years in southern Africa with Rio Tinto's (ASX:RIO) Rössing Uranium Limited, a subsidiary of Rio Tinto and operator of the Rössing uranium mine, located less than 20km to the north-east of Bannerman’s Etango Project. Rössing is the world’s largest open-cut uranium mine.

Interim Financing

Bannerman also announces that it has executed a term sheet with Resource Capital Funds IV LLP (“RCF IV”) for a secured convertible note facility (“Facility”) for up to A$20 million. Bannerman will draw down a minimum of A$10 million and has the option of drawing down a further A$10 million at any time during the 6 months following drawdown of the first tranche.

Resource Capital Funds, based in Denver, Colorado, is a specialist mining private equity manager that invests across a diversified range of commodities in projects located throughout the world.

The conversion price for the first A$10 million tranche under the Facility is A$0.612 per share, a 76.2% premium to the 30 day volume weighted average market price of A$0.347 per share on 14 November 2008. The conversion price for the standby tranche would be the lesser of $0.612 and a 20% premium to the 30 day volume weighted average price of Bannerman shares at the time of drawdown of that tranche, subject to a minimum conversion price of A$0.45. As noted above, drawdown of the standby tranche is at the election of Bannerman.

The Facility carries a coupon of 8% per annum, payable quarterly in arrears. Bannerman can elect to pay the coupon in the form of Bannerman shares rather than cash, based on prevailing market prices. Drawdown under the Facility

is subject to a range of conditions precedent including completion of definitive documentation. Documentation is well advanced and Bannerman is confident that the funds will be available by the end of November.

Funds raised under the Facility will be directed towards definitive feasibility studies as described in the Company’s quarterly activity report for the quarter ended 30 September 2008 and for general corporate and working capital purposes.

Bannerman Chairman Mr Geoff Stanley believes that concluding a financial agreement of this nature, despite the significant financial sector downturn, provides further evidence as to the credentials of Bannerman’s Namibian assets.

“The Board was pleased to have been able to negotiate these interim financing terms in an environment which is extremely challenging for junior companies such as Bannerman,” Mr Stanley said. “Critically, this funding will allow the Company to progress feasibility studies for the Etango Project to a point where funding options - and therefore value to shareholders - are able to be greatly enhanced,” he said.

"The Company has been encouraged by the expressions of interest it has received in the Etango Project from a number of parties and remains committed to moving towards production as expeditiously as possible."

http://www.proactiveinvestors.com.au/companies/news/406/bannerma

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Bannerman Resources Collects 20mn and a CEO