The uranium company Berkeley Resources said it plans to raise $10mln in a placement and right issue with Polo Resources, the AIM-listed company based in South Africa and registered in the British Virgin Islands, providing basic funding. The money will be used for a feasibility study into the Salamanca uranium project of Berkeley Resources, which is working mainly in Spain. This project includes uranium resource and an existing uranium processing plant.
The placement with the BVI company involves 14 mln new shares at 50 cents each, with seven million attaching options at an exercise price of 75 cents. Polo Resources will subscribe for 10 mln shares, of 14 mln, and take 5 mln options with the company's chairman Stephen Dattels taking a seat on Berkeley's board.
The existing shareholders will be given a chance to apply for one new Berkeley share for every 20 they hold as part of a rights issue; also, they will be entitled to one free attaching option for every new share they receive, exercisable at 75 cents.
The BVI-based Polo Resources holds coal and uranium assets in Mongolia.
