mark hohnen the " puppeteer "

Tuesday, September 21, 2010

Kalahari sees considerable value uplift from North River - Extract JV

Kalahari Minerals (LON:KAH) chairman Mark Hohnen believes that the joint venture agreed between North River Resources (LON:NRRP) and Extract Resources (ASX:EXT, TSX:EXT, NSX: EXT) can deliver a �considerable value uplift� for both associates. Kalahari owns more than 40% of both companies.

North River and Extract will work together to develop three uranium exploration licences in Namibia, near Extract�s world-class mine development project - the R�ssing South deposit on the Husab Uranium Project.

�[R�ssing South] has the potential to become the one of the largest uranium mines in the world, and Extract's entire focus has been advancing this world class asset towards production,� Hohnen commented.

Hohnen emphasised the JV will now allow these additional uranium licences to be developed rapidly by North River, and potentially deliver considerable value uplift to both North River and Extract.

�This joint venture agreement between North River and Extract will ensure that these licences, which are in a globally significant and highly prospective uranium district, are advanced whilst remaining under the guidance of our group of companies.�

Kalahari�s chairman also highlighted that Extract�s previous exploration, including preliminary drill testing, has already demonstrated the licenses� potential to host secondary uranium deposits.

Kalahari has a 44.7% interest in North River Resources and a 41.13% interest in Extract.

Under the terms of the joint venture agreement, North Rivers� subsidiary NRR Energy will invest US$800,000 for a 50% equity stake in the Extract Namibia subsidiary. On completion the joint venture company will be re-named Brandberg Energy.

Extract Namibia (Brandberg Energy) owns the EPL3327 and EPL3328 exploration licenses.

Additionally, Extract Resources has also agreed the terms of a separate joint venture with another North River subsidiary WAGE (West African Gold Exploration), to access the EPL3139 license. This license is located within 30km of Extract's Husab Uranium Project.

WAGE is the sole legal holder of EPL3139, and it has already applied for the rights to explore for nuclear fuel minerals on the license area, these rights have yet to be granted.

Should WAGE receive the exploration rights, WAGE and Extract have agreed to form an unincorporated 50/50 joint venture. WAGE will fund the first US$500,000 in exploration expenditure on EPL3139.

North River MD David Steinepreis and COO Luke Bryan will join Extract�s exploration manager Martin Spivey and non-executive director Inge Zaamwani-Kamwi on the Extract Namibia (Brandberg Energy) board.

NRR Energy will be the manager of Extract Namibia (Brandberg Energy).

Extract Resources retains certain rights to increase its interest in the joint venture should the partners make a new uranium discovery.

Extract�s flagship Husab/R�ssing South project is held separately by its Swakop Uranium subsidiary.


BOBCOCK...