Russia's OAO Severstal Remains in Talks With Uranium Explorer Berkeley

OAO Severstal, Russian billionaire Alexei Mordashov’s metals producer, remains in talks with Berkeley Resources Ltd. after a takeover proposal expired.

“The parties are continuing discussions in respect to other possible arrangements that may be entered into by them,” the Australian uranium-exploration company said in a statement today, without specifying what the talks are about.

Berkeley, which needs funds for its Salamanca uranium project in Spain, had been discussing a potential A$2-a-share ($1.98) offer from the Russian steelmaker which valued the Perth-based company at A$275 million.

Severstal’s offer, which represented a premium of about 40 percent to the volume-weighted average price of Berkeley shares in the three months to Oct. 28, expired Jan. 14 after the parties couldn’t agree to takeover terms, according to the statement today.

Berkeley’s Salamanca project is scheduled to start production by late 2012.

To contact the reporter on this story: Jason Scott in Perth at jscott14@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@Bloomberg.net.

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