LARGEST SHAREHOLDERS WILLING TO TAKE MORE.
Easy capital raising for Rossing South uranium project.
Extract Resources is raising cash for continued exploration at its big Rossing South uranium project through a share issue with existing major holders all planning to contribute.
Author: PROACTIVE INVESTORS
Posted: Wednesday , 26 Aug 2009
LONDON - www.mineweb.com
Extract Resources (ASX & TSX: EXT) certainly doesn't have any issue raising money. The uranium explorer and developer, which already has an impressive shareholder register, has announced that it would raise A$91 (USD76) million at A$7.75 per share through eligible shareholders and institutional investors.
Extract's three largest shareholders, Kalahari Minerals (AIM: KAH), Rio Tinto (LSE & ASX: RIO) and Polo Resources (AIM: PRE), who hold 40%, 15% and 10% respectively, confirmed that they would be taking up their rights.
The three companies also irrevocably committed and agreed to subscribe at the issue price, for any additional New Shares not subscribed for by the other holders of shares in Extract, in the same proportion to their current holding in Extract.
The proceeds raised by Extract Resources will be used to accelerate the exploration of the Rossing South uranium project in Namibia, which has a current resource of 267 million pounds of U3O8 grading 487 parts per million. Rossing South is still open along strike and at depth.
Kalahari Chairman Mark Hohnen said, "Extract's fund raising, which is effectively underwritten, represents both the next stage of its development as it advances its world class uranium portfolio and the huge value accretion potential of its assets. We maintain the belief that Extract has the ground and potential to ultimately deliver a total resource in excess of 500 M lbs U3O8 from the entire Husab Project, which will easily place it amongst the largest uranium companies in the world. We have supported Extract's development initiatives and will continue to do so as it looks to explore further zones of uranium mineralisation south of Zone 2 at Rossing South and initiates the Definitive Feasibility Study, a pre-requisite for assessing further the production potential of the project."
"Importantly, our institutional investors have always been aware of the need, and have actively encouraged us, to maintain our circa 40% shareholding in Extract, as they recognise the huge upside potential of its assets. Indeed our last fund raising of ÂŁ17.89 million conducted in May this year, with new and existing institutions, was considerably over subscribed. The Board is therefore highly confident that the investor appetite for Kalahari's fund raisings will be maintained and there will be little dilution for Kalahari following Extract's funding. I look forward to working with Extract to maximise the value of its portfolio and updating the market on our progress as we look to deliver shareholder value."
Published courtesy of Proactive Investors - www.proactiveinvestors.co.uk
- Forums
- ASX - By Stock
- rc research overview
LARGEST SHAREHOLDERS WILLING TO TAKE MORE.Easy capital raising...
-
- There are more pages in this discussion • 1 more message in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add EXT (ASX) to my watchlist
|
|||||
Last
1.1¢ |
Change
0.000(0.00%) |
Mkt cap ! $16.95M |
Open | High | Low | Value | Volume |
1.1¢ | 1.2¢ | 1.1¢ | $87.57K | 7.925M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
9 | 2685215 | 1.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
1.1¢ | 1002831 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
9 | 2685215 | 0.010 |
7 | 5717366 | 0.009 |
11 | 7792440 | 0.008 |
7 | 3620863 | 0.007 |
4 | 885609 | 0.006 |
Price($) | Vol. | No. |
---|---|---|
0.011 | 1002831 | 1 |
0.012 | 8267509 | 7 |
0.013 | 4027200 | 5 |
0.014 | 1071428 | 2 |
0.015 | 1324179 | 2 |
Last trade - 15.34pm 05/09/2024 (20 minute delay) ? |
Featured News
EXT (ASX) Chart |