Berkeley free to negotiate on Spanish U

12 January 2010

Berkeley Resources, the Australian company looking to resurrect uranium mining at various deposits in Spain, has freed itself to negotiate offtake and marketing rights with other parties by terminating a tentative deal with French company Areva. Berkeley and Areva had entered into the Heads of Agreement - a non-binding document setting out the main issues relevant to a tentative partnership agreement - in 2006. Termination of the agreement also ends any rights previously granted to Areva for offtake or marketing of uranium from Berkeley's projects, leaving Berkeley free to negotiate with other parties. Offtake and marketing rights could be an important element of future project financing for Berkeley, which recently announced a feasibility study into the possible restart of mining at several Spanish deposits. In an announcement to the Australian Securities Exchange, Berkeley said that it understands that Areva is planning to exercise its Berkeley options and dispose of its entire holding shares in the company, potentially contributing over A$7 million ($6.4 million) to Berkeley's cash position.

 

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