(Alliance News) - Berkeley Energia Ltd on Monday saw its shares drop, after an inconclusive result at the Spanish general election looks set to inhibit the firm's permit application for Salamanca.
Berkeley is a Spain-focused clean energy company focused on bringing the Salamanca project in Western Spain into production. Its shares plummeted 43% to 20.60 pence each in London on Monday afternoon.
In April, Berkeley's wholly-owned Spanish subsidiary, Berkeley Minera Espana, submitted a contentious administrative appeal before the Spanish National Court.
The appeal followed the Ministry for Ecological Transition & the Demographic Challenge's rejection of the authorisation for construction for the uranium concentrate plant as a radioactive facility at the Salamanca project.
On Sunday, the Spanish general election was held, in which all 350 seats in the Congress of Deputies were up, as well as 208 of 265 seats in the Senate.
With 99% of the votes counted, results indicate that right-wing parties Partido Popular and Vox are set to win 136 seats and 33 seats respectively, whilst the left-wing parties Socialists and Sumar are set to win 122 seats and 31 seats each.
In order to govern, a party or coalition must have a working majority of 176 seats. According to voting estimates, no party or coalition has secured this majority.
On Monday, Berkeley Energia issued an update highlighting these results, implying that permitting for the Salamanca deposit will remain gridlocked.
The firm told investors it was keen to initiate the administrative appeal, and also reiterated that it was "prepared to collaborate with the relevant authorities". It added that it remained "hopeful that the permitting situation can be resolved amicably".
As at June 30, Berkeley had AUD79 million in cash reserves, and no debt.
By Holly Beveridge, Alliance News reporter
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Berkeley Eng (BKY)