Berkeley hits permitting roadblock in Spain
The bad news is Ian Middlemas-chaired Berkeley Energy may have dusted more than a decade and untold millions trying to develop the Salamanca uranium project in Spain. The positive news is Berkeley is estimated to have more than A$75 million cash to go looking for a new project if indeed it comes to pass that the venture in Spain has been in vain.
Berkeley today reported authorities have evidently knocked back a permit to build a uranium plant at Salamanca.
Berkeley said it was “extremely disappointed” with the news and would strongly defend its position, with a “range of legal options” to be considered.
Investor confidence in the venture collapsed on the news, with the ASX company’s enterprise value reducing to less than $20 million.
Salamanca has shaped as a highly profitable development because of its size, grade and other characteristics, with shareholders’ cruelly crushed hopes being compounded given the recently thawing investor sentiment towards the uranium sector.
Middlemas, who has been at the company since 2012, is believed to hold about 3.6% of Berkeley.
However, as well as having plenty of cash, the other positive news for shareholders is Middlemas’ track record and connections in the resources sector, offering hope that if Salamanca can’t be salvaged, a quality new opportunity could yet emerge.
Shares in Berkeley were down 41% to 37c in morning trade, capitalising the company at $95 million.
Berkeley started the recently completed June quarter with $80 million cash.
Source: Mining Journey
Latest Posts
- Serbia, The real plans of the Jadar project
- Eurasian Resources Group highly commends the publication of the Critical Raw Materials Act
- Rio Tinto has spent more than a million euros on land in Serbia at the proposed site of a lithium mine that was eventually cancelled a year ago
- A new grievance mechanism for Chinese overseas mining needs to be free to use
- Europe revives mining to reduce dependence on the import of key raw materials, supply from Serbia as competitive choice
Popular Post
- Avala Resources shareholders invited to approve transaction with Dundee, copper-gold projects in Serbia
- Serbia, The real plans of the Jadar project
- Rosia Montana in Romania, UNESCO protection and value of civic action
- Canadian mining companies in Europe & ISDS
- Europe revives mining to reduce dependence on the import of key raw materials, supply from Serbia as competitive choice
- What Are The Major Natural Resources Of Macedonia?
- Gazprom-OMV deal exclude Romania OMV refinery
- How valuable is Kosovo’s mineral wealth?
- Romania mining: Rosia Montana gold mine arbitration case between Gabriel Resources & Romanian state, White&Case vs Lalive
- Gold mining project in Northern Ireland threatens livelihood of communities