Berkeley glows on Spanish uranium deal

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Berkeley glows on Spanish uranium deal

Mon, 27 April 2009
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Berkeley glows on Spanish uranium deal

Berkeley Resources shot ahead Monday as the firm’s planned tie-up with ENUSA Industrias Avanzadas (ENUSA) got the go-ahead from the Spanish authorities.

The Spanish Council of Ministers approved the co-operation agreement with ENUSA over the Salamanca uranium project on Friday.

Berkeley said it will now pay the initial deposit of €5m for the ENUSA assets and begin a feasibility study, which should take about 18 months to complete.

A placement and rights issue will also get underway that could raise as much as A$10m for the company.

The cornerstone investor in the placement, subscribing for 10m shares and 5m options, is AIM listed energy resources investor Polo Resources. Its chairman Stephen Dattels will join the Berkeley board once the placing is complete.

“Berkeley is ideally placed to undertake the feasibility study, which includes an existing uranium processing plant and the substantial combined resource base of the two companies,” it said.