Berkeley Energia pumeled after reports Madrid against granting permit for Salamanca mine

Shares in Berkeley Energia are being pummeled following reports that the new government in Madrid may be opposed to its plans in the country.

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According to local news outlet, Bolsamania.com, which cited Reuters, the Spanish government is against granting the company the necessary permits to proceed with the development of its flagship uranium mine in the Salamanca region.

One of the government sources cited by Reuters reportedly said the government in Madrid was itself awaiting the result of the still ongoing administrative process pertaining to the licenses but in any case its intention was to then deny final permission.

The company clarified that it had received no official notice from either Spain's Nuclear Safety Council nor any other government department to date.

Critically, perhaps, the NSC's board was up for renewal and the Spanish Socialist PSoE party and its parliamentary ally, Podemos, were expected to come out on top from the reshuffle, with a majority.

Both were reportedly against Berkeley's project.

Another source cited by Reuters reportedly said Berkeley was living "in a parallel universe" if it truly believed the mine would soon become a reality, adding that it would probably never see the light of day.

Management was awaiting a reply to its requests for clarification from the NSC and the Spanish Energy and Environment ministry, telling shareholders that it would make an announcement as soon as it received a response.

In a statement, the company further noted how both the NSC and the Spanish Energy and Environment Ministry had declined to comment on Wednesday's news reports in the local media.

The final decision to grant Berkeley the necessary permits rested with Spain's Ministry of the Environment.

A trading halt was placed on the outfit's shares on the Australian Securities Exchange on Wednesday, but as of 1326 BST they were cratering by 43.62% to 13.25p in London, having earlier plumbed an intra-day low at 12.50p.

The trading halt in Sydney would remain in place until 19 October, unless the company first made an announcement to the market, Berkeley Energia said.