Strong interest in uranium project

THE uranium price may be continuing to slide towards its lowest levels in more than a dozen years but when you are developing a low cost project like that to be built by Berkeley Energia, investors can still be evidently found with ease.
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Michael Quinn

Berkeley has raised GBP24.1 million by issuing new shares at 45 pence, with the funds pencilled for accelerating development of the Salamanca project in Spain.

In Australian dollar terms, the raising equates to $A39.1 million at 73c per share.

Salamanca is a $US100 million project that is forecast to have a cash operating cost of $13.30 per pound – though that is a life-of-mine cost and the early-mined Zona 7 deposit is pegged to have an operating cost of $9.90/lb.

The spot uranium price closed last week at $18.75/lb, having been at levels of over $70/lb earlier this decade.

In 2007 uranium nearly reached $140/lb, having started the century at levels around $10/lb.

In any case Berkeley has been flagging contract pricing levels above $40/lb.

Construction of Salamanca will begin in the first quarter of 2017 and production in 2019.

Shares in Berkeley were up 6.3% to A76c in early trade, capitalising the company at $152 million.

The stock has risen nearly 400% over the past six months.