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Major shareholder backs Berkeley Energia with financing at a premium
 
Berkeley Energia hits another important milestone as it announces that Resource Capital Funds (RCF) has demonstrated its strong support for the Company with a royalty financing and by increasing its stake in the Company with an equity financing issued at a premium to the current share price.
 
The US$10 million financing allows the Company to progress major infrastructure work and exploration programmes ahead of the main development financing which is expected to be undertaken during the second half of 2016.
 
The financing comprises an issue of US$5 million ordinary shares in the Company at a price of 32 pence per share which represents a premium of  9% to the 10-day VWAP and 15% to the 30-day VWAP, highlighting the strength of the project and its robust economics even at the current low uranium prices. 
 
RCF has also agreed to provide an additional US$5 million though the sale of a 0.375% fully secured net smelter royalty over the project, subject to final documentation.  The decision to issue a royalty is in line with the Company’s focus on minimising dilution in order to protect the equity value of its shareholders.
 
Managing Director Paul Atherley commented:
 
“The funding allows us to undertake the initial infrastructure development ahead of the commencement of main construction and financing later in the year. In addition it will allow us to target a number of the high value exploration targets looking for additional Zona 7 style deposits over the next few months.
 
The results of the optimisation studies being undertaken as part of the definitive  feasibility study to be published in the next couple of months are expected demonstrate the Salamanca project’s robust economics even at the current low uranium prices.”
 
The financing has been completed following several months of extensive due diligence by RCF and its advisors across all technical, economic, social, environmental and permitting aspects of the project and the investment at a premium is testament to the quality of the Salamanca project.
 
RCF is one of the Company’s largest shareholders holding around 7.2% of the issued capital. Since inception, RCF has supported 148 mining companies, with projects located in 47 countries and across 29 commodities.
 

To read the full announcement please click here.
 

Email: info@berkeleyenergia.com 
Web: www.berkeleyenergia.com
 
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