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LONDON (Alliance News) - Berkeley Energia Ltd on Monday said the USD5.0 million royalty financing with RCF V Annex Fund LP has been formally secured, allowing the business to undertake the initial infrastructure development at the Salamanca project in western Spain.
The miner said the formal documentation covering the royalty financing facility has been completed and executed.
The facility comprised of the sale of a 0.375% fully secured net smelter royalty over the project in return for the USD5.0 million of financing, alongside an additional USD5.0 million equity placement to RCF V Annex.
Berkeley said the equity placement was completed at a 15% premium to the 30-day volume weighted average price "at the time".
"Funds from the royalty will be made available to Berkeley following satisfaction of conditions precedent related to the lodgement of security documentation with Spanish authorities which will occur in the coming weeks," said Berkeley.
"The funding allows us to undertake the initial infrastructure development ahead of the commencement of main construction and financing later in the year," said Managing Director Paul Atherley. "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."
Berkeley said the results of the optimisation studies that are being conducted as part of the definitive feasibility study for the project will be released "in the next coming days", adding those results should "demonstrate the Salamanca project's robust economics even at the current low uranium prices", it said.
Berkeley shares were trading up 4.7% to 36.90 pence per share on Monday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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