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Energy

Berkeley Energia mulling options for full mine financing at Salamanca

In a quarterly report, the clean energy group said it has been approached by a number of groups due to the site's low operating and capital cost.

Spanish uranium mine developer Berkeley Energia Ltd (LON:BKY) says it's mulling a range of options to fully fund its Salamanca mine, where initial infrastructure work has now started.

In a quarterly report, the clean energy group said it has been approached by a number of groups due to the site's low operating and capital cost.

The preferred funding route would be the sale of a minority interest to a strategic partner for a price that reflects the NPV (net present value), it told investors.

The recent definitive feasibility study confirmed Salamanca as one of the world's lowest cost producers , and placed a net present value on the operation of US$531.9mln, with upfront capital costs of US$95.7mln.

With approvals in place for initial building, work has now begun on a road realignment and power line upgrade.

Berkeley Energia said it was fully funded for this initial development phase with A$11.3 million in cash and no debt.

It also expects to receive an additional US$5 million via the completion of a royalty transaction with major shareholder Resource Capital Funds (RCF) in coming weeks.

The group has already received US$5mln from a 15% premium placing with RCF carried out during the quarter.

Berkeley Energia shares added over 8% in early deals to stand at 49.5p

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