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Berkeley today reported authorities have evidently knocked back a permit to build a uranium plant at Salamanca.
Berkeley said it was "extremely disappointed" with the news and would strongly defend its position, with a "range of legal options" to be considered.
Investor confidence in the venture collapsed on the news, with the ASX company's enterprise value reducing to less than $20 million.
Salamanca has shaped as a highly profitable development because of its size, grade and other characteristics, with shareholders' cruelly crushed hopes being compounded given the recently thawing investor sentiment towards the uranium sector.
Middlemas, who has been at the company since 2012, is believed to hold about 3.6% of Berkeley.
However, as well as having plenty of cash, the other positive news for shareholders is Middlemas' track record and connections in the resources sector, offering hope that if Salamanca can't be salvaged, a quality new opportunity could yet emerge.
Shares in Berkeley were down 41% to 37c in morning trade, capitalising the company at $95 million.
Berkeley started the recently completed June quarter with $80 million cash.
