Spain-focused uranium junior Berkeley Resources has attracted takeover interest from Russian steel and mining giant OAO Severstal, with the Australian company flagging the possibility of a bid emerging valuing it at about $300 million.

Berkeley’s main attraction is its Salamanca uranium project in Spain, a $US150 million venture for which it is currently examining funding options. Although Berkeley in August sealed an agreement with Korea Electric Power that would help fund the project, it has now put talks with the Korean utility on the back-burner as it negotiates with Severstal.