China deal boosts Berkeley's funding chances

Berkeley Mineral Resources (BMR) has signed a strategic agreement with Chinese firm Hunan Nuclear Geological Bureau (HNGB) to work together on project identification, exploration and financing.

Also under the terms of the agreement is mining rights management, technical support and personnel exchange.

The initial focus will be Zambia where BMR's current licenced projects, operations and expertise are located. HNGB already has a technical office based in Lusaka Zambia, BMR said.

HNGB has interest in nuclear technologies and plant construction and also has investments in the mining of critical metals outside China, notably in Australia and New Zealand.

In total it operates in 20 countries, with exploration and development of antimony, tungsten and gold projects in Australia and New Zealand and lead and zinc interests in Zambia.

Masoud Alikhani, chairman of BMR, said: "We expect the signing of this Strategic Agreement to lead to immediate cooperation between BMR and HNGB. HNGB will have access to our technical expertise and knowledge of Zambia and they are interested in expanding their investments in Zambia and in funding BMR's expansion."

Investor view

Share in BMR were 1% down even though investor sentiment on the Interactive Investor discussion board was overwhelmingly positive.

'Dannysuko' said: "At last and after years of speculation Masoud Alikhani and BMR eventually agree partnership with a Chinese company. Hopefully just the start, but this is fantastic news. Will the market react? No-one knows, but in terms of strategic alliances this is what BMR needed."

"It's official and the big one - funding BMR's growth will have a lot of people sitting back comfortably now. I am very happy with that RNS," said 'Doubleorquits84'.

Finally, 'Smudger75' said: "Last week I had some serious concerns over Alikhani's handling of BMR and aired my concerns here. I'll hold my hands up - I was very wrong."