update on proposed offer for extract resources, page-9

Published 7:31 AM, 6 Feb 2012 Last update 7:31 AM, 6 Feb 2012

The global uranium industry is slowly, but surely, shaking off the stigma from the Fukushima nuclear power disaster and getting on with it. While the price of uranium is still in check, China is continuing to work towards securing supply and Australia’s Extract Resources looks certain to benefit. It’s expected that Extract will update the market sometime today about the takeover that’s assumed to be coming from China Guangdong Nuclear Power Corp, now that it has secured Extract’s 43 per cent shareholder Kalahari Minerals.

Extract Resources, China Guangdong Nuclear Power Corp

Perth-based uranium miner Extract Resources can now set the timer for a bid from China Guangdong Nuclear Power Corp. Late last week, the Africa-focused company received news that Guangdong has secured a controlling stake – 89.5 per cent to be exact – in the UK’s Kalahari Minerals. It’s been a long time coming, almost a year after Guangdong first started talking to Kalahari and set takeover speculation about Extract in motion thanks to the British company’s 43 per cent stake in the ASX-listed company. March 1 is the deadline for Guangdong to deliver its downstream offer at a presumed cost of $2.2 billion. Rio Tinto looks to have been the catalyst, having agreed to sell its stake in Kalahari last week.