Bannerman, which started the current quarter with $1.3 million cash, will use the funds for further optimisation studies on the Etango project in Namibia.

While the project has been the subject of multiple studies this decade, the low uranium price has precluded development of the previously modelled US$793 million, 7.2 million pounds per annum operation.

However there is some optimism that the market for producers could set to improve, with various operational closures such as Paladin Energy's nearby Langer Heinrich potentially heralding the bottom of the market.   

Bannerman's fund raising is pricing new shares at A4.6c.

Shares in Bannerman were at 5.7c immediately prior to the fund raising trading halt, capitalising the company at $49 million.

However on a 10-day volumed weighted basis, the pricing of the fund raising equates to a 9.2% discount.

Disclosure: The reporter holds shares in Bannerman