Following the announcement of the $10m financing issued at a premium to the current share price, the value of the Salamanca project is being recognised across the market. In an article in The Times last week the project was credited with "generating a nuclear future”.
Managing Director, Paul Atherley, is quoted in the article: “Normally an explorer moving into a development phase at this point has to find major shareholders to put money in. We don’t have to go anywhere because our majority shareholders happen to be some of the biggest mining investors in the world. We’re in the privileged position that they will put money into us at a premium. We’re an unusual company in that we have strong shareholders who will give us the capital we need.”
Please find the full article below:
The Times: Wine region generates a nuclear future
Marcus Leroux
11 May 2016
Salamanca is a part of Spain best known for its wine and its 12th-century university, but after a $10 million fundraising yesterday the city could soon be regarded as a nuclear centre.
Berkeley Energia, the AIM-quoted uranium miner, secured the backing of Resource Capital Funds (RCF), one of its largest shareholders, for financing towards the early infrastructure work before construction begins this year.
It will also allow Berkeley to size up potential resources to complement its Zona 7 uranium deposit. The funds will go towards building a road and improving a power line. Paul Atherley, Berkeley’s managing director, said the fundraising was a vote of confidence in the project.
“Normally an explorer moving into a development phase at this point has to find major shareholders to put money in,” he said. “We don’t have to go anywhere because our majority shareholders happen to be some of the biggest mining investors in the world. We’re in the privileged position that they will put money into us at a premium. We’re an unusual company in that we have strong shareholders who will give us the capital we need.”
RCF holds a 7 per cent stake in the company while BlackRock holds another 5 per cent. The placing of shares with RFC at 32p, representing a 9 per cent premium to the price over the past ten days, raised $5 million. Another $5 million was raised through the sale of royalties attached to future production.
The price of uranium crashed after the Fukushima disaster in 2011, but Mr Atherley believes that the long term prospects are good. “The world needs clean energy and the only scalable clean energy is nuclear,” he said. “We all love renewables but there are only so many windmills you can stick in the North Sea. When the world keeps growing and needs more energy, you have to meet that demand.”
In a note to clients, SP Angel analysts wrote: “The additional funding from RCF vindicates the company’s development strategy and should enable Berkeley Energia to press ahead with exploration and development without funding constraints. RCF’s increased participation at this stage is likely to be interpreted as an endorsement.”