23/03/2009 - 11:47

London firm backs Berkeley $10m raising

23/03/2009 - 11:47

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Perth-based Berkeley Resources plans to raise $10 million with half of the funds to come from AIM-listed company Polo Resources.

London firm backs Berkeley $10m raising

Perth-based Berkeley Resources plans to raise $10 million with half of the funds to come from AIM-listed company Polo Resources.

Berkeley said it will raise the funds through a share placement and rights issue with funds to be applied towards its Salamanca uranium project in Spain.

Under the placement, 14 million shares will be offered at a price of 50 cents each, along with 7 million options exercisable at 75 cents each.

Polo will be the cornerstone investor in the placement, subscribing for 10 million shares and 5 million options.

On completion of the placement, Polo chairman Stephen Dattels will joint the Berkeley board.

Mr Dattels was previously the founder of Uramin Inc, which was sold for $US2.5 billion to multi-national Areva in 2007.

Berkeley added a number of existing institutional shareholders have agreed to subscribe up to a further 4 million shares and 2 million options in the placement.

The rights issue will be launched following completion of the placement, with shares offered on a one-for-20 basis, including a one-for-two free attaching options at 75 cents each.

Berkeley said if all shares are subscribed to under the issues, a total of just less than $10 million will be raised.

The placement is subject to shareholder and regulatory approvals.

Shares in Berkeley climbed five cents to 55 cents at 14:04 AEDT.

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