Berkeley finds investor to fund Spain uranium mine to production
JOHANNESBURG (miningweekly.com) – Aim- and ASX-listed Berkeley Energia has signed a $120-million investment agreement with the sovereign wealth fund of Oman to fund the Salamanca uranium mine, in Spain, into production.
The investment will position Oman as a long-term strategic investor in the company, as well as a potential offtake partner.
The investment is structured as an interest-free and unsecured convertible loan of $65-million, which can be converted into ordinary shares at 50p a share resulting in the fund owning approximately 28% of the company; and three tranches of options convertible at a weighted average price of 85p a share contributing a further $55-million towards the later phases of the company's development of the Salamanca mine resulting in the fund holding a further 9% of the company.
Berkeley Energia MD Paul Atherley said on Wednesday that Oman’s involvement would assist the company in achieving the full potential of the Salamanca project, which is one of the only major uranium mines in development at the moment.
“The project benefits from a rare combination of low up-front capital cost and very low operating costs and due in part to its location in the heart of the European Union we are able to contract supply at prices well above the current spot price.
“The fund's interest in matching our future offtake contracts will further enhance our revenue stream."
Berkeley is spending €82.3-million on building the Salamanca mine, which will produce 4.4-million pounds a year over ten years – placing the company among the top-ten global uranium producers.
Construction started last month.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...
VISIT SHOWROOM
South African leader in Steel -Racking, -Shelving, and -Mezzanine flooring. Universal has innovated an approach which encompasses conceptualising,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
