Bannerman announces partnership with One Economy Foundation

RMB Namibia was engaged by Bannerman in August 2016 to conduct a process to identify both charitable and financial investors in the Etango Project, culminating in the partnership with the One Economy Foundation. ENS Africa was the legal advisors to the transaction.

Local ownership is a key pillar of Bannerman's corporate social responsibility in Namibia, and a vital means of addressing the Government of Namibia's Harambee Prosperity Plan and its aim to eradicate poverty.

“Growth in the mining sector is critical to Namibia's economic and social development. Therefore, I applaud this partnership between Bannerman Resources and the One Economy Foundation as a strong example of how the benefits of mining can be used to achieve our aim of Social Progression across all sectors of our society,” stated Mr Obeth Kandjoze, Minister of Mines and Energy.

The One Economy Foundation is a Namibian Welfare Organisation (WO 468) that concerns itself with the dual economy in Namibia, where one economy is prosperous and urban, with ready access to a developed economic, physical and technological infrastructure. And the second economy is informal, township or rural and lacks access to the networks, technology and capital required to succeed in the first economy. The One Economy Foundation achieves strong effectiveness and positioning through targeted interventions designed to address entrenched poverty and unsustainably high levels of income and wealth inequality, in a structural and meaningful way, thereby, facilitating more Namibians to enter and/or elevate their participation in the first economy.

Under the terms of the agreement, Bannerman Mining Resources (Namibia) will issue 5% of its ordinary share capital to the One Economy Foundation for par value. The One Economy Foundation will be loan carried for all future project expenditure including pre-construction and development expenditure, with a proportion of future dividends used to repay the loan and the balance providing cash to fund the Foundation's activities.

Mr Werner Ewald, Managing Director, Bannerman Mining Resources (Namibia), notes that, “Since 2006, Bannerman has invested N$600 million developing its Etango Project, so a 5% shareholding has an immediate and substantial value. By providing this shareholding at par value (effectively free) Bannerman is demonstrating its strong endorsement and belief in the One Economy Foundation and what it can achieve in the longer term. Once developed, Etango will be a very large and long life mine, thus providing the Foundation with an opportunity for a long-term source of income to implement sustainable social development projects that we all feel passionate about.”

Ms Twapewa Kadhikwa, Non-Executive Director of Bannerman Mining Resources (Namibia), said, “It is a huge privilege to join hands with the One Economy Foundation as long-term equity partners in Bannerman's Etango Project. The Foundation's mission, approach and energy are closely aligned with Bannerman's outstanding record as a leader in corporate social responsibility in Namibia. We passionately support the Namibian Government's poverty eradication objectives under the Harambee Prosperity Plan and this new partnership will deliver on the role the Ministry of Mines and Energy expects us to play and fulfil.”

One Economy Foundation's Chief Executive Officer, Uajorokisa­ Akwenye, said, “The Etango Project has the potential to be a significant driver for positive development in the Namibian economy and it is exciting to have the One Economy Foundation's objectives aligned with its long-term success. I am immensely proud of the vision and approach that the One Economy Foundation has developed – and I am delighted that Bannerman has endorsed our approach with this partnership.

“The One Economy Foundation, like all non-profits, is compelled to seek a sustainable long-term funding model in order to benefit a broad-base of Namibians who operate in the second economy. As this is a long term funding transaction, it further ensures long term funding sustainability for the One Economy Foundation, while we continue to look for short to medium term funding for the next 8-9 years. This transaction ensures that the One Economy Foundation complies with its stated objective of outliving its founders and remaining a key non-profit focused on addressing poverty and social inequalities regardless of whom are the individuals at its helm. We are optimistic and look forward to the partnership with Bannerman Resources.”