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Berkeley Resources in pre-open pending ENUSA negotiations for Spanish uranium project

Published: 09:36 30 May 2011 AEST

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Berkeley Resources (ASX: BKY) has been granted a trading halt by the ASX pending an announcement regarding an update on negotiations with Enusa Industrias Avanzadas S.A. (ENUSA) for the Salamanca Uranium project located in Spain, with the company's share placed in pre-open.

Regarding the Salamanca Uranium project, the most recent significant development has been the progress in implementing the Cooperation Agreement with ENUSA relating to that proportion of the project’s resource inventory within the State Reserves.

Under the terms of the agreement, Berkeley elected to make the decision to exploit the eligible Mineral Resources within the State Reserves in January this year.

This decision triggers the formation of a joint venture company, NEWCO, owned 90% by Berkeley and 10% by ENUSA, which will have the right to exploit uranium Mineral Resources within the State Reserves.

The formation of NEWCO does not impede Berkeley from also developing its 100% owned Mineral Resources and treating either mined material or concentrates through the Quercus Plant under a toll treatment arrangement provided for in the Co-operation Agreement.

Berkeley shares will remain in pre-open until the ENUSA negotiation announcement is made, or the commencement of trading on Thursday 2nd June.

 

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