10th May 2016 07:08
LONDON (Alliance News) - Berkeley Energia Ltd Tuesday said one of its major shareholders has agreed to inject USD10.0 million into the business by increasing its stake and by providing additional financing.
Resource Capital Funds currently holds a 7.2% stake in Berkeley Energia and has agreed to provide the funds so the London-listed company can progress its exploration programmes and conduct some major infrastructure work.
The USD10.0 million will fund activities at the Salamanca uranium project in Spain until the company secures the main bulk of financing needed to develop the asset, which Berkeley plans to pursue in the second half of this year.
"The funding allows us to undertake the initial infrastructure development ahead of the commencement of main construction and financing later in the year. In addition it will allow us to target a number of the high value exploration targets looking for additional Zona 7 style deposits over the next few months," said Managing Director Peter Atherley.
"The results of the optimisation studies being undertaken as part of the definitive feasibility study to be published in the next couple of months are expected to demonstrate the Salamanca project's robust economics even at the current low uranium prices," he added.
Resource Capital Funds will provide Berkeley with USD5.0 million by purchasing shares in Berkeley Energia priced at 32.0 pence each - implying the shareholder will be acquiring around 15.6 million shares in the miner.
Those shares represent around 9.0% of the miner's current issued share capital and the price represents an 8.1% premium to the company;s closing share price on Monday.
Berkeley shares were trading up 1.2% to 30.60 pence per share on Tuesday morning.
The other USD5.0 million will be generated by Berkeley Energia selling a 0.375% net smelter royalty over the Salamanca project to Resource Capital Funds, which it said was in line with its goal to minimise dilution to shareholders.
By Joshua Warner; [email protected]; @JoshAlliance
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