Berkeley Resources Ends Agreement with Severstal

Berkeley Resources Ends Agreement with Severstal

Berkeley Resources Ltd advises that the exclusivity granted to OAO Severstal expired on 29 December 2010.
 
Berkeley and Severstal have not yet been able to agree terms upon which Severstal may make an agreed bid for the Company, however, the Subscription Rights Deed and therefore, Severstal’s right to subscribe for shares in Berkeley, remains in force until 14 January 2011 but is only exercisable if Severstal announces an intention to make a takeover bid for the Company on or before that date.
 
Berkeley has received an alternative transaction proposal from Severstal and the Company will continue discussions with Severstal in relation to this proposal. However, in light of the recent substantial improvements in the price of uranium and the valuation of uranium assets, the Directors of the Company are of the view that Berkeley should consider the fullest possible range of financing alternatives.
 
Accordingly, the Company decided not to extend the exclusivity arrangement.
 
As foreshadowed in the announcement on 26 November 2010, Mr John (“Ian”) Stalker has tendered his resignation as Managing Director, due to personal reasons and will remain on the Board as a Non-Executive Director. Mr Stalker’s resignation will take effect immediately and Mr Henry Horne, Financial Director, has been appointed Acting Managing Director until a permanent appointment is made.

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