Last checked at 24 Feb 2012 07:47
24 February 2012
Update on Berkeley-Enusa Negotiations
Regarding negotiations between Berkeley Resources Limited ("Berkeley" or "the Company") and Enusa Industries Avanzadas, S.A ("Enusa") towards forming the joint venture company "Newco", aiming to exploit the Enusa Mining Domain State Reserves, Berkeley advises the following:
·; On the 10 November 2011 Berkeley submitted to Enusa the next level of the restricted Mining Domain Feasibility Study (MDFS) called the Conceptual Basic Engineering Report (CBER). As detailed in the Company's ASX release of 15 December, 2011, this report was compiled by Jacobs Engineering and independently reviewed by the Spanish international engineering company, Tecnicas Reunidas. Project economics and financial model inputs were audited by independent financial auditing company Accuracy. It is the clear view of Berkeley and its consultants that this study not only confirms the feasibility of the project, but has now been developed to a level of accuracy well beyond what would normally be considered for a project at this stage of development.
·; Enusa has now informed Berkeley of its concerns regarding the CBER.
·; Berkeley does not concur with any of the issues raised; however, this advice means that it is unlikely that Newco will be incorporated by the current deadline of 29 February 2012. The Company will be discussing these issues with Enusa.
·; Berkeley has received advice from its Spanish legal advisers, Herbert Smith, that the Collaboration and Consortium agreements continue to be enforceable according to their terms.
·; This outcome does not affect the development of Berkeley´s 100% owned Salamanca I project, which is continuing towards production in 2014.
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