Extension of Subscription Agr

RNS Number : 7810X

Berkeley Resources Limited

10 December 2010

 



 

EXTENSION GRANTED TO OAO SEVERSTAL

Berkeley Resources Ltd ("Berkeley" or the "Company") advises that OAO Severstal ("Severstal") requested that the Company sign an amendment to the existing Subscription Rights Deed, which was due to expire on 10 December 2010.

The Berkeley Resources Board has considered Severstal's request and has agreed to an extension of the exclusivity period to 29 December 2010.  

Severstal requested this extension to give it additional time to conduct its due diligence.

In addition, Severstal's right to subscribe for shares in Berkeley will now expire on 14 January 2011, unless it has announced an intention to proceed with a takeover bid on or before that date.

A summary of the key terms of the Subscription Rights Deed is contained in Annexure A of Berkeley's announcement dated 29 October 2010.

SHAREHOLDERS SHOULD NOTE THAT THIS DOES NOT CONSTITUTE AN ANNOUNCEMENT OR PUBLIC PROPOSAL BY THE COMPANY OR SEVERSTAL THAT SEVERSTAL WILL BE MAKING OR PROPOSING A TAKEOVER BID FOR THE COMPANY AND THERE IS NO GUARANTEE THAT A TAKEOVER BID OR ANY OTHER PROPOSAL WILL BE MADE OR PROPOSED. FURTHER, IF A TAKEOVER BID IS MADE OR PROPOSED, THERE IS NO GUARANTEE THAT IT WILL BE AT A PRICE OF $2.00 PER SHARE.

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

                        RBC Capital Markets: Martin Eales               Tel: [phone]

BMO Capital Markets:

Sarfraz Visram, Managing Director                Tel: [phone]

Robin Birchall, Vice President                        Tel: [phone]

 

END

 

 

MSCFFAFMSFSSEFE