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24 May 2011 10:52
24 May 2011
BERKELEY RESOURCES LIMITED
Update on Berkeley-Enusa Negotiations
In relation to the negotiations between Berkeley Resources Limited ("Berkeley") and Enusa Industrias Avanzadas, S.A. ("Enusa") aimed at the formation of a joint venture company ("Newco") that will exploit the Enusa Mining Domain Definitive State Reserves, Berkeley advises:
·; On 18 February 2011 Berkeley submitted to Enusa a restricted Feasibility Study, called the Mining Domain Feasibility Study, which is based on mineral resources containing more than 92% in themeasured and indicated categories, within the State Reserves. The Mining Domain Feasibility Study has been prepared by Berkeley in conjunction with a number of international expert consulting firms. It is the view of Berkeley and its consultants that this study confirms the feasibility of the Project, notwithstanding that it represents only about half of the presently defined resources within the Salamanca Uranium Project.
·; On 23 May 2011, Enusa informed Berkeley of its concerns regarding a number of aspects of the Mining Domain Feasibility Study.
·; Berkeley does not concur with a number of these concerns and as a result, it is unlikely that Newco will be incorporated by the current deadline of 27 May 2011. The Company will be discussing these concerns with Enusa.
·; Berkeley remains committed to completing the broader feasibility study and commissioning the Salamanca Uranium Project as soon as possible. The Company is currently considering its alternatives in respect of the delay, including seeking arbitration, as provided for in the Co-operation Agreement between the companies.
Enquiries - Acting Managing Director: Henry Horne Tel: +34 673 497 712 Chairman: Dr. Jim Ross Tel: +61 8 9284 9294
RBC Capital Markets: Martin Eales Tel: +44 20 7029 7881
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