Just piccked this up from UK publication called...

Just piccked this up from UK publication called GrowthBusiness.co.uk - London,England,UK

The article explains why Kalahari agreed to be capped at 40% of EXT - RIO teamed up with Coronet and threatened to block the cap raising if Kalahari did not agree to 40% cap.

Hohnen not happy with Rio!!!

Fighting talk from Kalahari
Article Date: May 13 2009

Uranium play Kalahari Minerals chairman Mark Hohnen is angry at shareholder Rio Tinto’s ‘arrogant’ attitude to its successful £17.9 million placing.

Mining giant Rio Tinto, under pressure these days over aluminium problems and the terms of a massive proposed Chinese capital injection, holds 15 per cent of AIM-quoted Kalahari, whose prime asset is a 38 per cent-plus stake in Aussie-quoted Extract Resources, owner of Namibia’s promising Rossing South uranium project. Rossing South is a few kilometres away from Rio’s long-standing Rossing uranium mine and Hohnen says he would be happy for Rio to participate ‘if Rio acknowledges its full value’.

Investment group M&G (part of the Prudential insurance empire) was among institutions subscribing to Kalahari’s placing at £1 to support the project, which has already shown impressive grades of up to 3,920 parts of U3O8 per million. Fans argue Rossing South’s Zones 1 and 2 could together contain up to 250 million lbs of U3O8 at an average 430 parts per million, a significantly higher grade than Rio is thought to be obtaining these days at Rossing.

However, Rio, which in February unofficially suggested helping and even underwriting a Rossing South-related fundraising by Kalahari, teamed up with nine per cent holder Coronet Resources to block the placing unless Kalahari agreed not to take its Extract stake above 40 per cent. Since the placing needed 75 per cent support, Kalahari accepted the restriction.

Rio also has an appreciable stake in Extract, which has hired Rothschild to consider its options, developing Rossing South on its own, agreeing a joint venture with an end user or selling the project. The company has embarked on a bankable feasibility study and analysts suggest production could start in 2012.

Other players in this drama include AIM-quoted Niger Uranium, with a significant chunk of Kalahari, and uranium entrepreneur Stephen Dattels, head of Polo Resources, with nearly six per cent of Extract, and Emerging Metals, another Kalahari holder. ‘We are the pilot fish on the shark’, declares Hohnen.

Highlighted by Growth Company Investor at 15p three years ago, Kalahari shares hit 125p in April and now trade at 114p. Partial profit taking might be prudent, but there could be more to play for.