Berkeley Energia Limited (LON:BKY) said the formal documentation covering its US$5mln royalty financing deal has been “completed and executed”.
The agreement was with the RCF V Annex Fund, which has bought a 0.375% net smelter royalty for the Salamanca uranium project in Spain.
The money will be made available in the “coming weeks”, the company said. The deal is part of Berkeley’s strategy of raising additional cash without diluting equity investors.
Managing director Paul Atherley said the injection of funds would allow the firm to begin initial infrastructure development ahead of the commencement of main construction and financing of the mine development later in the year.
“In addition it has allowed us to recommence drilling at a number of the previously identified high potential exploration targets, including extensions to the Zona 7 deposit to the south and at depth,” he added.
“The results of the optimization studies being undertaken as part of the definitive feasibility study to be published in the next coming days are likely to demonstrate the Salamanca project's robust economics even at the current low uranium prices."