Here is the statement made by Mark Hohnen at today's Kalahari...

Here is the statement made by Mark Hohnen at today's Kalahari AGM in London.
He refers to potential alternative commercial arrangements with CGNPC. Sounds like he is no longer hopeful of a firm offer down the line IMO. Also of note is his criticism of Rio for apparantly blocking efforts by Kalahari to further increase its shareholding in Extract.

What do people think?

11 May 2011
Kalahari Minerals plc (?Kalahari? or ?the Company?)
Annual General Meeting Statement

Kalahari Minerals plc, the AIM listed resource company, held its Annual General Meeting earlier today, at which all of the resolutions proposed were duly passed. Kalahari?s Executive Chairman, Mark Hohnen, made the following statement at the meeting:

?Following the announcement yesterday by the Hearings Committee of the Panel that our appeal has been dismissed, CGNPC Uranium Resources Co., Ltd (?CGNPC-URC?) is not permitted to reduce the price of its possible offer to 270p per share and has withdrawn its Possible Offer. However, Kalahari understands that CGNPC-URC recognises the inherent value of the world class Husab Uranium Project (?Husab?) and we are looking at establishing a strong commercial relationship with CGNPC-URC, which is one of the world?s largest consumers of uranium, with six nuclear power stations currently operating and a further 19 under construction or in development. We may, going forwards, review alternatives for co-operation in the absence of an offer by CGNPC-URC for Kalahari. In this vein, while Kalahari considers its position in regard to building a commercial relationship, Kalahari has decided that it will not demand payment of the ?7.5 million Break Fee at this time, although it has reserved its rights in relation to this.

?It is widely recognised that the nuclear industry remains critical to the long term global energy market and that projects such as Husab have significant roles to play, in spite of the tragic events seen in Japan. It is disappointing that CGNPC-URC?s revised possible offer was unable to proceed, as the Board of Kalahari believes it represented an attractive opportunity to crystallise the inherent value of our interest in Husab. Nevertheless, our focus as directors of Kalahari remains centred on realising the value of Husab, and we remain committed to the onward stewardship and cultivation of commercial discussions through which to achieve this.

?Extract is now at a crucial and delicate stage of its development, and we remain fully committed to the onward support of Extract and its expansion and advancement initiatives for Husab. Central to this is the Mine Optimisation and Resources Extension (M.O.R.E.) programme which Extract has commenced at Husab. The objective of the M.O.R.E. programme is to increase the mine life, to investigate opportunities to add additional value through optimisation of the mine plan and process modifications, and to enhance the project?s operating and financial performance. This will be advanced in tandem with further exploration on the wider Husab area, increasing the current resource through additional drilling on new zones of mineralisation, including Zones 3, 4 and 5 of Husab, Middle Dome, Pizzaro and Salem. With regards to licences, we also welcome clarification from the Hon. Isak Katali, Minister of Mines and Energy that the proposed changes to the Namibian Minerals Policy will not apply to existing exploration and mining licences. Kalahari, together with the board of Extract, recognises the importance of maintaining an open dialogue with the appropriate ministers and officials in Namibia, in order to expedite the development of Husab.

?We are highly supportive of the above plans to realise the value and potential of Husab. Accordingly, it is imperative that Kalahari remains unrestricted to maintain and, wherever possible, increases its current 42.79% interest in Extract, as it delivers on the various capital requirements of developing Husab towards production. We are therefore disappointed that Rio Tinto, which holds an 11.5% interest in the Company, again voted against the resolution to increase the Company?s headroom to allot additional shares. This is the third attempt by Rio Tinto to limit or disallow our ability to exercise our right to maintain or increase our interest in Extract; an action which we believe would directly affect our powers to accrue value for our shareholders.

?Kalahari remains fully committed to the development of Husab for the benefit of all stakeholders. In line with this, the Board of Kalahari will continue to proactively evaluate the various commercial opportunities open to the Company, in order to maximise the full potential of Husab as the most exciting new uranium project in the world. I look forward to updating shareholders in this regard in due course, and would like to take this opportunity to thank them for their continued support.?