23 Dec 2009 11:33
23 December 2009
BERKELEY RESOURCES LIMITED
Restructure of Royalty Arrangements
Berkeley Resources Limited ("Berkeley") advises that the Company has today agreed to restructure the Company's royalty commitments to the original founders and vendors of Berkeley's Spanish subsidiary, Minera de Rio Alagon SL ("MRA").
The previous royalty of 3% applied to production from MRA properties and included an accelerating minimum cash royalty, which Berkeley is now obliged to pay. In order to remove some ambiguity inherent in the previous agreement, the parties have agreed to replace the previous royalty with a 1% royalty on all Berkeley's future uranium production in Spain and Portugal, including potentially non-MRA properties.
The minimum cash royalty will also be terminated, in exchange for issue to the MRA vendors of 750,000 new ordinary fully paid shares in the Company. Application will be made for the new shares to be admitted to AIM and dealings are expected to commence on 31 December 2009.
Enquiries - Managing Director: Ian Stalker Tel: +27 824 553 442
RBC Capital Markets: Martin Eales Tel: +44 20 7029 7881
Berkeley Eng (BKY)