Statement re ENUSA

RNS Number : 1760H

Berkeley Resources Limited

24 May 2011

 



24 May 2011

BERKELEY RESOURCES LIMITED

Update on Berkeley-Enusa Negotiations

In relation to the negotiations between Berkeley Resources Limited ("Berkeley") and Enusa Industrias Avanzadas, S.A. ("Enusa") aimed at the formation of a joint venture company ("Newco") that will exploit the Enusa Mining Domain Definitive State Reserves, Berkeley advises:

·     On 18 February 2011 Berkeley submitted to Enusa a restricted Feasibility Study, called the 
Mining Domain Feasibility Study, which is based on mineral resources containing more than 92% in themeasured and indicated categories, within the State Reserves.  The Mining Domain Feasibility Study has been prepared by Berkeley in conjunction with a number of international expert consulting firms. It is the view of Berkeley and its consultants that this study confirms the feasibility of the Project, notwithstanding that it represents only about half of the presently defined resources within the Salamanca Uranium Project.

·     On 23 May 2011, Enusa informed Berkeley of its concerns regarding a number of aspects 
 of the Mining Domain Feasibility Study.

·     Berkeley does not concur with a number of these concerns and as a result, it is unlikely that 
Newco will be incorporated by the current deadline of 27 May 2011.  The Company will be discussing these concerns with Enusa.

·     Berkeley remains committed to completing the broader feasibility study and commissioning 
the Salamanca Uranium Project as soon as possible.  The Company is currently considering its alternatives in respect of the delay, including seeking arbitration, as provided for in the Co-operation Agreement between the companies.

Enquiries - Acting Managing Director:      Henry Horne         Tel:  [phone] 
                  Chairman:                                Dr. Jim Ross        Tel:  [phone]

                  RBC Capital Markets:             Martin Eales         Tel:  [phone]

 

END

 

 

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