Exploitation Plan for Salaman

RNS Number : 8971X

Berkeley Resources Limited

14 December 2010

 



BERKELEY RESOURCES LIMITED

EXPLOITATION PLAN FOR THE SALAMANCA URANIUM PROJECT

Berkeley Resources Ltd ("Berkeley" or the "Company") advises that Enusa Industrias Avanzadas S.A. (ENUSA) has acknowledged receipt of the Exploitation Plan in respect of the Definitive State Reserves of the Salamanca Uranium Project, which was submitted by Berkeley to ENUSA on 18 November 2010.

Berkeley has notified ENUSA on 27 November 2010 that the Feasibility Study incorporated in the Exploitation Plan fulfils the definition set forth in the Collaboration Agreement between Berkeley and ENUSA dated 29 January 2009 ("Collaboration Agreement"). In response, ENUSA has notified Berkeley officially, dated 01 December 2010, that it should communicate in writing to ENUSA on or before 18 January 2011 its decision of whether to exploit the Salamanca Uranium Project.

The Exploitation Plan and other regulatory documentations are required under the Spanish Mining Regulations and are the first step to initiating the process for applying for the necessary permits and will be submitted to the mining authorities. The Exploitation Plan supports the feasibility of the Salamanca Uranium Project and encompasses radiological, processing/metallurgical, mining, water treatment, reclamation and closure, social impact assessments, health and safety, and financial studies.

Pursuant to the Collaboration Agreement, any decision by Berkeley to exploit the Salamanca Uranium Project is required to be undertaken in the following order:

(a)          Berkeley providing ENUSA with a formal notice in writing of its decision to exploit the Salamanca Uranium Project on or before 18 January 2010;

(b)          the incorporation of a new joint venture company (NEWCO) which will undertake the exploitation of the Salamanca Uranium Project. Berkeley and ENUSA will have interests in the share capital of this new joint venture company of 90% and 10% respectively; and

(c)          payment of €20 million by Berkeley to ENUSA, payable earliest mid April 2011.

In addition, the Company is finalizing a further 'Exploitation Plan' in relation to the Retortillo Deposit (100% owned by Berkeley) which will be presented to the Castilla y Leon regional authorities shortly.

Enquiries -       Managing Director:            Ian Stalker       Tel:  [phone]

                        RBC Capital Markets:       Martin Eales     Tel: [phone]

A full version of this announcement including images can be downloaded from Berkeley's website at www.berkeleyresources.com.au.

 

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