Extract confirms Husab talks Tania WinterTuesday, 29 November...

Extract confirms Husab talks

Tania Winter
Tuesday, 29 November 2011

AUSTRALIAN uranium company Extract Resources has confirmed state-owned China Guangdong Nuclear Power Company and Namibian state-owned Epangelo Mining Company are progressing talks in a bid to secure a minor stake in its Husab deposit.

Both groups have entered into a working agreement to try and obtain a 10% stake in the world’s fourth largest uranium deposit.

Earlier this year, Epangelo was allocated exclusive exploration and mining licences over all of the strategic minerals, including uranium, in the country, while CGNPC remains in takeover talks with Extract’s 43% and major shareholder, UK-based Kalahari Minerals.

Extract has already applied for a mining licence to develop the $US1.7 billion ($A1.71 billion) Husab project which is located near Rio Tinto’s Rossing uranium operation.

CGNPG lowered its original bid for Kalahari following the Fukushima nuclear disaster in March to 243.55 pence per share, valuing the company at around GB pound 610 million ($A954 million).

It represents a 10% plunge on the price of 270p/share agreed on in May and a 16% dip on the original proposal offer of 290p/share in March.