4Nov 2016

Berkeley Energia raising up to $30m for Salamanca project


Berkeley Energia  AIM/ASX: BKY announced a proposed fundraising on today, in a bid to accelerate the development of the Salamanca project in Spain, including construction of the crushing circuit and other infrastructure items.

The company said the fundraising would take place through the issue of new ordinary shares at a price of 45p, to raise between $25m to $30m (£16.1 million to £24.1 million) before expenses (the “Placing”).

It said the placing shares are being offered by way of an accelerated bookbuild, which was launched immediately after its announcement on Friday morning.

The board explained that, following a decade of exploration and $60m of investment, development of the Salamanca mine commenced in August 2016 and is now well underway.



The Placing will be completed in two tranches as follows:

(i) Tranche A Placing Shares (the “Firm Placing Shares”): 35,712,381 new ordinary shares to raise approximately US$20.0 million (£16.1 million) before costs under the Company’s capacity under ASX Listing Rules 7.1 and 7.1A (the “Firm Placing”); and

(ii) Tranche B Placing Shares (the “Conditional Placing Shares”): 17,869,572 new ordinary shares to raise approximately US$10.0 million (£8.0 million). The Conditional Placing Shares are to be issued subject to shareholder approval at a general meeting of shareholders (the “Conditional Placing”) to be held in mid December 2016 (the “General Meeting”). Application will be made to the London Stock Exchange

London Stock Exchange plc for the 35,712,381 Firm Placing Shares to be admitted to trading on AIM (“First Admission”). It is expected that First Admission will take place at 8:00am on or around 9 November 2016

AIM (“Second Admission”). It is expected that Second Admission will take place at 8:00am on or around 16 December 2016 (or such later date as the Joint Bookrunners may agree with the Company, not being later than 8:00am on 23 December 2016)

General Meeting

A Notice of General Meeting in respect of the Conditional Placing Shares is expected to be issued on or around 14 November 2016.berkeley_energia_logo_horix_rgb-e1448892639375

Berkeley Energia  goal is to establish the mine as one of the world’s lowest cost uranium producers, the board said, providing reliable long term supply for customers from within the European Union.

The $100m project will be Europe’s only major uranium mine, Berkeley claimed, and once in production will be one of the world’s biggest producers supplying more than four million pounds of uranium concentrate a year, equivalent to approximately 10% of the continent’s total requirement.

Commenting on the successful completion of the Placing, Managing Director, Paul Atherley, said:

“The funds raised will be used to bring forward the construction of the crushing circuit and other facilities associated with the main construction to early next year,”

“We are delighted with the strong institutional support for this financing which allows us to accelerate the development of the Salamanca mine.”

“The placing has been heavily oversubscribed by London based blue chip generalist institutions who will dominate the register once settlement completes.”

“This successful financing is a positive endorsement of the Salamanca project, a US$100m project that will be Europe’s only major uranium mine and one of the world’s biggest producers.”

“We are extremely encouraged by the ongoing strong local support for the project and in return we continue to be absolutely committed to the rejuvenation of the local community.”

“The mine will create over 450 full time jobs and 2,000 indirect once in full production to a region badly hit by long term unemployment,” he added.

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