can you smell that, page-8

Here's Ambrian's take on the offer........

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Consolidates Holdings - Via offer for Coronet

17 December 2009


Kalahari Minerals* has announced that it has made an all-share offer for the private company Coronet Resources, whose principal asset is 16m Kalahari shares (valued at approximately A$50m). Kalahari will offer 16m Kalahari shares in exchange for Coronet.

In our view the key rationale for this transaction is simply to increase the direct voting control Kalahari has over its own shares. In exchange, Coronet shareholders (made up mainly of former Extract Resources management) were able to exchange their shareholding into a more liquid vehicle (ie, Kalahari).

There is no short-term risk of overhang as Coronet shareholders are subject to a 90-day lock-in. Thereafter, we dont see a risk of overhang due to the existing strong institutional demand for Kalahari stock.

http://www.kalahari-minerals.com/News/Analyst_Research/Consolidates_Holdings_-_Via_offer_for_Coronet;_no_/News.aspx?id=146

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Cheers all!