What we own

The Group has a 1% life of mine NSR royalty on the Salamanca uranium project located in Spain and operated by ASX-listed Berkeley Energia Limited (‘Berkeley’). The project consists of four main deposits (Retortillo, Alameda, Zona 7 and Gambuta) and is located in Salamanca Province, Spain, approximately 250km west of Madrid.

Performance

Berkeley began 2017 by announcing an offtake agreement with Curzon Resources under which it will provide 2Mlbs of uranium per annum over five years at US$43/lb, a significant commercial milestone.

Berkeley announced in December 2017 that it has now contracted uranium for 2.75Mlbs for the first six years, and has granted the Oman sovereign wealth fund the right to match any future long-term offtake agreements.

A large focus for the year was on raising finance to fund the construction of the mine. To that extent and undoubtedly the highlight of 2017 for Berkeley was the agreement entered into with the sovereign wealth fund of the Sultanate of Oman to invest up to $120 million into the project. The first $65 million was received in November 2017. This is in addition to Berkeley’s $30.0 million equity raise in H1 2017.

These fundraising initiatives largely remove the financing risk associated with construction of the mine. Progress is continuing at site, with delivery to site of the primary crusher in July 2017. Berkeley continues to explore for additional deposits similar to that of Zone 7.

Berkeley expects construction to be largely completed by the end of 2018 with production commencing shortly thereafter.