11/09/2008 05:34 >> =DJ UPDATE: Rio Tinto Takes 10.9% Stake In...

11/09/2008 05:34 >> =DJ UPDATE: Rio Tinto Takes 10.9% Stake In Extract Resources


http://www.intesatrade.it/intesa/News/DettaglioNotizieOggi&idNot=1394742

By Ross Kelly Of DOW JONES NEWSWIRES SYDNEY (Dow Jones)--Rio Tinto Ltd. (RTP) said Thursday it has raised its holding in Namibia-focused uranium miner Extract Resources Ltd. (EXT.AU), which is trumpeting promising developments at its Rossing South venture. Listed on the Australian and Toronto stock exchanges, Extract is currently in the midst of a merger proposal with AIM-listed copper prospector Kalahari Minerals PLC (KAH.LN). Kalahari has the necessary board approvals to buy the 61% of Extract it doesn''t already own and dual list the company on AIM and the ASX. Rio Tinto has bought 10.9% of Extract, while it also owns 14.9% of Kalahari, giving it 16.7% of Extract and a combined holding in both companies worth just under A$40 million. A Rio Tinto spokesman said the global mining giant didn''t buythe Extract stake to spoil the Kalahari deal. "Extract''s made several announcements on drilling results at Rossing South and Rio''s interested in their early stage exploration program," the spokesperson said. Extract''s Rossing South operations are located just seven kilometers away from Namibia''s massive Rossing uranium project in which Rio has a 68.6%. At 0330 GMT, Extract shares were up 8 cents at A$1.29, giving the Perth-based company a market capitalization of A$272.7 million. Extract executives are currently in Namibia, but company secretary Rance Dorrington said Rio''s interest was an endorsement of Rossing South''s potential. He said the venture was "shaping up as one of the next major uranium developments in the world." There is no official resource at Rossing South but drilling to date prompted Extract to recently release a preliminary target estimate of between 126 million and 198 million pounds of uranium oxide. Dorrington said synergies could be sought between the Rossing and Rossing South developments. Rio also has a 68.4% interest in local uranium miner Energy Resources of Australia Ltd. By Ross Kelly, Dow Jones Newswires; 61-2-8235-2963 ; [email protected] Click here to go to Dow Jones NewsPlus, a web front page of today''s most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=BmB6zJwi0pQvKogVShuQ5A%3D%3D. You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires 11-09-08 0334GMT Copyright (c) 2008 Dow Jones & Company, Inc.