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Salamanca Provincial Council terminates collaboration agreement with Berkeley, hopes to derail uranium project

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(Kitco News) - Local media sources reported today that the Salamanca Provincial Council has decided to terminate the collaboration agreement with Berkeley Energia, signed in September 2016, for the “construction of a variant on the SA-322 road (DSA-451)."

Earlier in December 2020, the Supreme Court of Spain dismissed an appeal against authorization for Berkeley Energia’s Retortillo uranium mine project, located in western Spain, about three hours west of Madrid.

The Supreme Court has confirmed the prior authorization granted by the Government to Berkeley Minera Spain for its uranium concentrates plant in Retortillo (Salamanca), after rejecting the appeal submitted by Foro de Izquierdas - Los Verdes and Adeco - Ecologistas en Acción groups.

The Stop Uranio platform hopes that the setback suffered by the mining company in its relationship with the provincial institution means "the beginning of the end of the project".

In July 2016, Berkeley published the results of a definitive feasibility study confirming that the Salamanca project will be one of the world’s lowest cost uranium producers, capable of generating strong after-tax cash flows through the current low point in the uranium cycle.

The project has NPV of US$531.9 million with an internal rate of return of 60% based on a discount rate of 8%.

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