Berkeley Mineral Resources Regulatory News (BMR)

BERKELEY MINERAL RESOURCES PLC

("BMR" or "the "Company")

Placing to raise £1,000,000

Berkeley Mineral Resources Plc, which is primarily engaged in processing mining tailings in Zambia, through its wholly owned subsidiary Enviro Processing Limited ("EPL"), announces that it has conditionally raised £1,000,000, before expenses, through a Placing ("the Placing") of 71,428,570 Ordinary Shares ("Placing Shares") of 1 pence in the capital of the Company ("Ordinary Shares"). The Placing Shares have been conditionally placed at a price of 1.4 pence per Placing Share ("the Placing Price").

Once formal approval has been granted by the Zambian Environmental Management Agency ("ZEMA") for EPL's processing operations, the Company intends to use the net proceeds of the placing to expedite its ongoing programmes at Kabwe.

Details of the Placing

Pursuant to the terms of a Placing Agreement, Novum Securities Limited (Novum) has agreed to subscribe or procure subscribers for up to 71,428,570 new ordinary shares of 1 pence each at a price of 1.4 pence per share ("the Placing"). 

The transaction is split into two tranches of £500,000:

• First Tranche to be subscribed 5 business days after signing of the Placing Agreement.

• Second Tranche to be subscribed 10 business days after the Company's announcement of approval of EPL's Environmental Impact Statement ("EIS") by ZEMA.

The Placing Agreement contains provisions entitling Novum to terminate the Placing Agreement at any time prior to Admission of either Tranche 1 or Tranche 2 or waive such conditions. The obligations under the Placing Agreement will terminate unless all conditions have been satisfied or waived by 31st July 2014 or such later date as the Company and Novum may agree.

Pursuant to the terms of the Placing Agreement, Novum has been granted the right to subscribe for one warrant for every Placing Share underwritten, exercisable at a price of 2.8 pence per Ordinary Share at any time up to three years from issue.

The Placing is conditional, inter alia, on admission of the Placing Shares to trading on AIM. The New Shares will rank pari passu with the existing issued Ordinary Shares of 1 pence in the capital of the Company ("Ordinary Shares"). Application has been made to AIM for the Placing Shares under Tranche 1 to be admitted to trading and it is expected that Admission will become effective and that dealings in such New Ordinary Shares will commence at 8.00 a.m. on Tuesday 8th July 2014.

Following the issue of the initial tranche of shares, the Company's issued ordinary share capital will be 1,308,419,601 ordinary shares of 1 pence each.

The above figure of 1,308,419,601 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company, under the FCA's Disclosure and Transparency Rules.

Masoud Alikhani, Chairman, commented:

"This funding, coming from long-term investors who know our business well, is a further endorsement of our processing aims and plans.

"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."

1st July 2014

For further information: 

Berkeley Mineral Resources Plc 020 7408 1181

Masoud Alikhani, Chairman

WH Ireland Limited 020 7220 1666

Chris Fielding, Head of Corporate Finance

Lothbury Financial Services 020 3440 7620

Michael Padley / Gary Middleton

For further information please see the Company's website at http://www.bmrplc.com 

The Directors of Berkeley Mineral Resources accept responsibility for this announcement.