Berkeley Mineral Resources (LON:BMR) said that the outlook for the year is very positive and it is funded to commence commercial operations at the Kabwe zinc-lead mine in Zambia.
During the six month period to 31 December 2010, the company undertook a share issue to raise £11.8 million before expenses, “substantially funding” the capital costs of the planned processing plant and working capital to commence commercial operations at Kabwe. This year, Berkeley raised another £3.1 million.
Post-period, the Berkeley signed an agreement to acquire the remaining Kabwe tailings dumps, long land lease and processing licence and now plans to add other tailings sites.
“We are looking forward to the next stage of development at our tailings processing business at Kabwe. With the planned acquisition of other tailings sites together with the Kabwe tailings, BMR has the potential to be a significant base metal supplier,” said chairman of Berkeley Masoud Alikhani.
Advanced negotiations over a further significant potential acquisition identified in Zambia are underway. The asset primarily comprises copper tailings and for which extensive data exists.
The unaudited loss for the period was £863,632 compared with a loss of £232,468 for the same period in the prior year. The results include share-based payment costs for the issue of share options of £433,440.
The company plans to commission the JORC standard resource statement for the main leach plant dumps and appoint consultants to prepare the specification for the construction of an appropriate beneficiation plant.
Production is now scheduled to start in the second half of this year. Berkeley is currently in negotiations with potential off-take partners for the supply of zinc and lead concentrates.