Enusa JV Uranium Project Update

RNS Number : 1358W

Berkeley Resources Limited

25 January 2012

 



25 January 2012

Update on the Berkeley-Enusa JV Uranium Project

Further to the last announcement on 15 December 2011, Berkeley Resources Limited ("Berkeley" or "Company") advises that it has extended the time for Enusa Industria Avanzadas, S. A. ("Enusa"), to form the joint venture company, NEWCO, in accord with the Co-operation Agreement ("Agreement").

Berkeley has extended the deadline to 29 February 2012, following the recent change in government in Spain.

Also, Berkeley and Enusa have jointly agreed to extend the deadline for Enusa to inform Berkeley of its conclusions on the Feasibility Study, to no later than 23 February 2012. This review is in consideration of the Mining Domain Conceptual Basic Engineering Report (CBER) delivered by Berkeley on 10 November 2011.

Once the agreed formalities and conditions have been fulfilled, both companies will proceed to finalise the agreements and form NEWCO.

The incorporation of NEWCO triggers the payment of €20M to Enusa within 30 days of formation. NEWCO will be responsible for exploitation of the uranium resources within the State Reserves (Mining Domain) and shall be owned 90% by the Company. Berkeley has received advice from its Spanish legal advisers, Herbert Smith, that the Agreement continues to be enforceable according to its terms.

Berkeley remains committed to developing the ENUSA Joint Venture Project, which the company expects will be its second uranium project development, closely following Berkeley's 100% owned Salamanca 1 Project.

Enquiries -       Managing Director:     Brendan James            Tel: [phone]                          RBC Capital Markets:  Martin Eales               Tel: [phone]

 

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