News: Extract shares jump on Kalahari offer

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Yesterday Extract Resources Ltd (ASX:EXT) was the best performer stock in the S&P/ASX200 after China’s CGNPC Uranium Resources Ltd confirmed its interest in buying Extract’s 42.76 per cent shareholder, Kalahari Minerals Plc.

However following the nuclear crisis that hit Japan’s Fukushima nuclear plant in March and the consequent fall in uranium equity values, the Chinese suitor says it plans to lower its bid by 7 per cent.

The revised offer has Kalahari’s support and both companies have agreed to extend the deadline by which a formal bid should be made to 17 June, pending the approval of the Takeovers Panel.

If the deal goes through CGNPC would gain a stake in Extract's Husab uranium project in Namibia.

The project was also given a boost yesterday after news broke that the Namibian government’s new mining legislation won’t impact existing licenses.      

Yesterday shares in Extract Resources jumped 14.22 per cent, or $0.95, after existing a trading halt to close at $7.63.    

In the six months to the 31 December 2010, Extract Resources recorded a net loss of $33.6 million.