Berkeley Resources (ASX: BKY) is an exploration and development group with a dominant land holding and advanced uranium exploration and development projects in Spain.
Berkeley's focus is on the successful completion of a Feasibility Study at its flagship Salamanca Uranium Project, incorporating the Spanish State Reserves and the Quercus Uranium Processing Plant. BKY is committed to aggressively pursuing the ongoing exploration, appraisal and potential development of this outstanding uranium Project in order to fulfill its strategic objective of becoming the next European uranium producer in the near-term.
Berkeley Resources raises A$7m, sells A$5m equity to Polo Resources
Berkeley Resources (ASX:BKY) has advised that the Company has reached agreement to place up to 14 million new shares in the company at A$0.50 each, along with 7 million free attaching options exercisable at A$0.75, to a number of corporate and institutional shareholders, to provide funding for completion of the Feasibility Study for Berkeley’s Salamanca Regional Uranium Project.
The cornerstone investor in the placement, subscribing for 10 million shares and 5 million options, is Polo Resources Limited, an AIM listed energy resources investor chaired by Mr Stephen Dattels Mr Dattels, who will join the Berkeley Board on completion of the placement, was previously a founder and Director of Uramin Inc, which was sold for USA$2.5 billion to Areva in mid 2007.
A number of Berkeley’s existing institutional shareholders have agreed to subscribe up to a further 4 million shares and 2 million options in the placement (“Institutional Placement”). The placements, totalling 14 million shares, along with 7 million free attaching options exercisable at A$0.75, are conditional upon receipt of the approval of the Spanish Council of Ministers for the transaction announced on 10 December 2008.
Issue to shareholders
Subsequent to the placements, Berkeley shareholders will also be given the opportunity to participate in a non-renounceable 1:20 rights issue on the same terms, including the 1 for 2 free attaching options at A$0.75.
If all shares available under the issues are subscribed, a total of just less than A$10m (before costs) will be raised. As a minimum, A$5m will be raised from the Polo Resources placement.
Berkeley is pleased to have secured this essential funding for the Feasibility Study in a very difficult market environment. Mr Dattels and the executive team from Polo Resources not only have very considerable mining and corporate expertise but they have an outstanding track record in developing world class uranium assets.
The outlook for nuclear power and uranium mining is compelling and Berkeley believes the Salamanca Regional Uranium Project – which includes a very substantial resource base and an existing uranium process plant presently on care and maintenance – is ideally placed to deliver into the forecast uranium production shortfall.
