Berkeley Mineral Resources (LON:BMR) has conditionally placed 136.6 million shares to raise £2.05 million in order to exercise the option to secure the rights to process the remaining tailings dumps acquired at the Kabwe mine in Zambia, as announced in June.
The placing price of 1.5 pence compared to yesterday’s closing price of 2 pence.
The placing is conditional on the option being exercised, which is expected on or around 19 August when the company will complete its legal and metallurgical due diligence on the tailings dumps.
“These additional funds will allow BMR to proceed promptly with the exercise of the option following resource verification, which we expect to be completed very shortly. All the material has already been mined and is above ground and all the necessary infrastructure is in place,” said chairman Masoud Alikhani.
The Kabwe deposits, located approximately 110km north of the Zambian capital Lusaka, were discovered in 1902. By the time the operations closed in 1994, it had produced about 1.8 Mt of zinc, 800,000 tonnes of lead, 7,800 tonnes of vanadium pentoxide and lesser quantities of cadmium, silver and copper.