Spanish uranium play Berkeley is planning to list on a third exchange
Mining & Resources
Not content with listing on two exchanges, uranium explorer Berkeley Energia is looking to list on a third.
The energy stock (ASX:BKY) today announced a plan to list on the Spanish Exchange, as well as moving to London’s primary exchange.
Berkeley — which is trying to bring a Spanish uranium project into production — told investors the move made sense considering its Salamanca project was close to Spain’s capital city of Madrid.
“The directors believe that such listings will provide increased liquidity for its investor base and provide access to significant new pools of capital including large Spanish institutional shareholders, mutual funds and pension funds as well as retail shareholders in Europe, many of which could not be accessed previously,” Berkeley said.
The stock has been listed on London’s Alternative Investment Market (AIM) since 2006 but hopes to step up to the city’s main exchange, the Main Board LSE, next month.
The move follows a $160 million investment from the Oman sovereign wealth fund last year which will cover upfront capital costs of the Salamanca project.
Construction of a plant is expected to start this year after it was given the green light from all European Union and local authorities.
Berkeley has sales agreements for 2.75 million pounds of uranium concentrate under long-term contracts over the first six years of production, with potential to extend that by a further 1.25 million pounds.
Berkeley says it has received 7000 job applications from local residents — including 400 from nearby villages.
“The decision to simultaneously list the company in Spain reinforces Berkeley’s long-term commitment to the country and the investment it is making there, which is expected to create over 2500 direct and indirect jobs in a region that has suffered from some of the highest levels of unemployment in the European Union,” it said.