BKY Berkeley Energia Limited

 

TIDMBKY 
 
RNS Number : 8133Q 
Berkeley Resources Limited 
10 August 2010 
 

10 August 2010 
 
                           BERKELEY RESOURCES LIMITED 
 
   Development and Financing Partnership with KEPCO for the Salamanca Uranium 
                                    Project 
 
Berkeley Resources Limited (ASX/AIM:BKY) is pleased to announce that it has 
entered into a non-binding Memorandum of Understanding (MOU) with the Korea 
Electric Power Corporation (`KEPCO'), to finance and develop the Salamanca 
Uranium Project. 
The Korea Electric Power Corporation is a Korean government invested diversified 
energy company with assets over $US 80 billion and revenues of over $US 30 
billion, on a consolidated basis as of December 31, 2009. The company is 
involved in the generation, transmission and distribution of electrical power 
from nuclear, hydro, coal, oil and LNG sources worldwide. KEPCO provides 
electricity to almost all households in Korea and operates twenty nuclear power 
plants in the country with six more under construction. The company has over 
30,000 employees and is listed on the Korean Stock Exchange and the New York 
Stock Exchange. 
KEPCO will invest, at the Project level only, US$ 70 million for a 35% interest 
in Berkeley's Salamanca Uranium Project, which comprises of Aguila, Alameda, 
Retortillo and Villar mining areas. KEPCO will also contribute funding of 35% 
for the development of the Salamanca Uranium Project assets to bring them into 
production as well as ongoing operating expenditure. 
Berkeley and KEPCO will work together through appropriate Board representation 
at project level and will regularly review future Capital needs and off-take 
arrangements as the project development phase progresses. 
In return, this agreement provides that KEPCO will execute a proposed offtake 
agreement to purchase 35% of the Salamanca Uranium Project's U308 production at 
industry standard terms, based on a mix of spot and term prices. 
Mr. Ian Stalker, Managing Director of Berkeley commented: 
'The strategic partnership with such a successful industry heavyweight as KEPCO 
confirms our determination to rapidly develop our Salamanca Uranium Project and 
be operational by the end of 2012. We are delighted to have this added 
flexibility in both our financing plan and market awareness, particularly at 
this stage of our project development. This marks a significant achievement in 
the progress of Berkeley's development cycle and goes a long way to achieve the 
development of this unique and strategic Project. Berkeley will also retain 100% 
of the exploration potential in its extensive portfolio as well as the Gambuta 
Project, which has a JORC inferred resource of 9.2 Mlbs.' 
The transaction is subject to the completion of a final sixty (60) days due 
diligence by KEPCO, execution and delivery of a Definitive Agreement (DA) within 
thirty (30) days thereafter and Berkeley and KEPCO Board approvals, as well as 
the receipt of certain regulatory stock exchange approvals, if required. 
 
 
For further information please contact: 
 
 
 
Enquiries -       Managing Director:                 Ian Stalker       Tel:  +34 
608 221 497 
                        RBC Capital Markets:            Martin Eales    Tel: 
+44 20 7029 7881 
                        BMO Capital Markets:           Robin Birchall  Tel:  +44 
20 7664 8121 
                        Conduit PR                             Charlie Geller 
Tel:  +44 20 7429 6604 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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