Issue of Equity

RNS Number : 6340E

Berkeley Resources Limited

23 December 2009

 



23 December 2009

BERKELEY RESOURCES LIMITED

Restructure of Royalty Arrangements

Berkeley Resources Limited ("Berkeley") advises that the Company has today agreed to restructure the Company's royalty commitments to the original founders and vendors of Berkeley's Spanish subsidiary, Minera de Rio Alagon SL ("MRA"). 

The previous royalty of 3% applied to production from MRA properties and included an accelerating minimum cash royalty, which Berkeley is now obliged to pay. In order to remove some ambiguity inherent in the previous agreement, the parties have agreed to replace the previous royalty with a 1% royalty on all Berkeley's future uranium production in Spain and Portugal, including potentially non-MRA properties.

The minimum cash royalty will also be terminated, in exchange for issue to the MRA vendors of 750,000 new ordinary fully paid shares in the Company.  Application will be made for the new shares to be admitted to AIM and dealings are expected to commence on 31 December 2009.

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

                     RBC Capital Markets:               Martin Eales    Tel: [phone]

 

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