Last checked at 30 Dec 2010 07:00
30 December 2010
BERKELEY RESOURCES LIMITED
UPDATE ON OAO SEVERSTAL PROPOSAL AND
RESIGNATION OF IAN STALKER
Berkeley Resources Ltd ("Berkeley" or the "Company") advises that the exclusivity granted to OAO Severstal ("Severstal") - as set out in the Company's announcements dated 29 October 2010 and 10 December 2010 - expired on 29 December 2010.
Berkeley and Severstal have not yet been able to agree terms upon which Severstal may make an agreed bid for the Company, however, the Subscription Rights Deed and therefore, Severstal's right to subscribe for shares in Berkeley, remains in force until 14 January 2011 but is only exercisable if Severstal announces an intention to make a takeover bid for the Company on or before that date.
Berkeley has received an alternative transaction proposal from Severstal and the Company will continue discussions with Severstal in relation to this proposal.
However, in light of the recent substantial improvements in the price of uranium and the valuation of uranium assets, the Directors of the Company are of the view that Berkeley should consider the fullest possible range of financing alternatives. Accordingly, the Company decided not to extend the exclusivity arrangement.
As foreshadowed in the announcement on 26 November 2010, Mr John ("Ian") Stalker has tendered his resignation as Managing Director, due to personal reasons and will remain on the Board as a Non-Executive Director. Mr Stalker's resignation will take effect immediately and Mr Henry Horne, Financial Director, has been appointed Acting Managing Director until a permanent appointment is made.
Mr Horne is an outstanding international mining executive who holds a degree in Financial Accounting and Business Economics from the University of Stellenbosch (South Africa) and has more than 29 years' experience in the mining industry. This experience includes senior management and executive postings at mines in Namibia, South Africa, Ghana, Bulgaria, Chile and Russia with companies including Gold Fields, Kinross Gold, Navan Mining and Highland Gold. Mr Horne was the former Chief Executive Officer of Highland Gold in Russia and also served on various Boards.
Enquiries - Acting Managing Director: Henry Horne Tel: +34 673 497 712
RBC Capital Markets: Martin Eales Tel: +44 20 7029 7881
BMO Capital Markets:
Sarfraz Visram, Managing Director Tel: +1 416 359 5864
Robin Birchall, Vice President Tel: +44 20 7664 8100