||Berkeley had a very eventful and successful 2016 which saw them build on the progress they made in 2015 by raising finance during the year to fund construction.On January 31, 2017, Berkeley announced its fourth quarter update in which it reported an oversubscribed $30m equity raise, signing of an off-take agreement and continued to develop the infrastructure required to construct the mine. They appear on track to complete the construction of the mine during 2017 which, if completed, should bring forward the start date for the commencement of our royalty. In addition to having a royalty over the Salamanca project, Anglo Pacific is also a large shareholder in the company and currently holds just over 9%.
The value of this investment increased considerably over the course of the year and the Group took the opportunity to realise a modest amount of cash from this position. We were pleased to see the successful fundraisings undertaken in 2016 which clearly demonstrates considerable support for the project and has increased liquidity in the stock. We were also pleased to see the announcement on June 8, 2016 that Berkeley had entered into a financing agreement with Resource Capital Funds (RCF), which included a further 0.375% royalty on the project for US$5m. This would imply a fair value of $13.3m for the Group’s 1% royalty. Anglo Pacific paid A$4.1m for the royalty a number of years ago, which implies that the value of the Group’s royalty, which is not reflected on our balance sheet, is considerably higher