The West Australian-24 April 2010 Page 74 Business-Herd on the Terrace
Extract Resources Has an eventful 2009, what with board spills, court action and an aborted merger.
But 2010 has been distinctly quieter as the uranium explorer works though a strategic review to decide how to develop its world-class Rossing South deposit in Namibia.
So The Bull was intrigued by a report that suggested shareholder tensions are on the rise again.
According to South Africa's Southern Times, Extract's single biggest shareholder, Kalahari Minerals, has quietly knocked back an Extract proposal to develop Rossing (South) as a joint venture with Rio Tinto, which is a shareholder in Extract and owns the neighboring Rossing mine.
Opposition from Kalahari, which owns 40% of Extract, would be a major blow, given that a joint venture with Rio is thought to be near the top of Extract's list of development options.
What a pity then, for those who like a good stoush, that it isn't true.
"Kalahari has never received a proposal from Extract," Kalahari executive chairman Mark Hohnen told The Bull. "We are aware that they have conducted a review and will consider what they bring forward. Kalahari has not intimated to Extract that it would block (a joint venture) - obviously it is in the interests of our shareholders to consider all options."
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