Well isn't this similar to the situation when the Russians put in a licence application for Husab claim. Doubt and little government clarification. I assume the EXT position is probably correct, but we'll have to wait for clarification. Meanwhile doubt reigns...
Shares in Extra Resources and Paladin Energy remain under pressure
Sarah-Jane Tasker From: The Australian April 29, 2011 12:03PM
SHARES in Namibia-focussed Extract Resources and Paladin Energy fell further today despite the uranium hopefuls hosing down speculation the African government would give mining projects to local outfits.
In response to a speeding ticket from the Australian Securities Exchange, Extract said today the company was seeking clarity from the Namibian government.
"In the meantime, the company believes that these statements have been taken out of context and reiterates that the government of Namibia continues to be supportive of Extract and the Husab uranium project,'' Extract said in its statement to the ASX.
Shares in Extract were 4.62 per cent lower at $7.22 this morning, after tumbling 10 per cent yesterday. Paladin dropped 2.32 per cent to $3.37, after losing 3 per cent yesterday.
Paladin Energy said today it had already sought clarification and that following discussions with the government, the company understood that the equity position and operations of its Langer Heinrich operation remain unaffected.
Namibia's Minister of Mines and Energy Isak Katali told parliament last week that the cabinet had approved proposals to declare uranium, copper, gold, zinc and coal strategic minerals and give the state exclusive exploration and mining rights over them.
Extract's uranium project, Husab, adjoins Rio Tinto's Rossing mine in the region and junior Paladin Energy's flagship project is also close by. --------------------------------------------------------------------------------
EXT Price at posting:
$6.68 Sentiment: LT Buy Disclosure: Held
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