Katali's behaviour suggests CGNPC have not given up. By making a bid for Kalahari (and Extract) CGNPC have everything to gain and nothing to loose.
If Kalahari sells out to CGNPC (likely) that gives them 42.8% of Extract and if ASIC requires CGNPC to make a downstream offer for Extract shares they only need Extract shareholders to sell them another 8% of Extract to have control of Extract.
No doubt Katali is trying to throw a spanner in the works but he risks killing Namibia's resource industry by making Namibia an unattractive place to invest in. It might be better for him to work with the new owners so that Namibia gets what it wants (Epangelo involvement) and China gets what it wants (a major supply contract).
But there are others who do not want CGNPC (China) to get its hands on a major uranium deposit. (e.g. RIO, BHP, PDN, Uranium One, ARMZ, etc). What will they do to stop this?
Extract's Husab deposit is considered the best in the world because it is huge, has high grade ore which is easily recovered and there are no environmental problems.
Buckle up and get ready for a wild ride!
EXT Price at posting:
$6.68 Sentiment: Hold Disclosure: Held
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