LONDON (Alliance News) - Berkeley Mineral Resources PLC Tuesday said it has conditionally raised GBP1.0 million before expenses in a share placing through its subsidiary Enviro Processing Ltd, money it will use to expedite its ongoing programmes at the Kabwe project in Zambia where the subsidiary is awaiting formal approval from authorities for its processing operations.
Last week, Berkeley Mineral Resources said that the Zambian Environmental Agency had decided to defer its environmental approval decision while it talks with stakeholders, just days after the company had said that it had had "learnt via the Zambian press that approval for the processing operations at Kabwe had been granted."
In a statement, Berkeley Mineral Resources said that it placed 71.4 million shares at 1.4 pence each with Novum Securities Ltd. The placing will be split into two GBP500,000 tranches.
The first will be subscribed to five business days after the placing agreement is signed, while the second will be subscribed 10 business days after the Zambian Environmental Management Agency approves its environmental impact statement. The placing agreement allows Novum to terminate the placing agreement at any time prior to admission of either of the tranches. Novum has also been granted the right to subscribe for one warrant for every placing share underwritten at a 2.8 pence exercise price any time up to three years from when they are issued.
"This funding, coming from long-term investors who know our business well, is a further endorsement of our processing aims and plans," Chairman Masoud Alikhani said in a statement.
"Once we have received confirmation of clearance from ZEMA of EPL's EIS, we intend to devote the funds raised now to expediting production through our installed copper plant and advancing towards the processing of our zinc and lead tailings inventory. These are already onsite at Kabwe," Alikhani added.
Berkeley Mineral Resources shares were Tuesday quoted at 1.68 pence, down 4.0%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.