Why the Berkeley Energia Ltd share price is soaring today

The Berkeley Energia Ltd (ASX:BKY) share price is climbing on rumours its Salamanca share price may gain approval.

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The Berkeley Energia Ltd (ASX: BKY) share price has rocketed 50% this morning to 37.5 cents after the miner with tenements in Spain drew notice to Spanish media reports suggesting its Salamanca uranium mining project may gain regulatory approval.

Berkely Energia is the only ASX-listed miner focusing on Spain and reports that it has invested EUR70 million over the last 10 years in the Salamanca mine, with plans to invest another EUR250 million over time if it gets the right regulatory approvals.

The project is controversial due to the harmful environmental impacts associated with uranium mining, but Berkely Energia claims the project could create up to 2,500 direct or indirect jobs over time.

As its mine is not operational the miner has no cash flow to speak of for the quarter ending September 30 2018 and posted an operating loss of $2.4 million, but it does have a very strong balance sheet with $100 million cash on hand.

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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