trading halt!, page-7

Extract in halt pending possible Kalahari offer
Thursday, 10 November 2011

SHARES in uranium play Extract Resources have entered a trading halt pending a release by its largest shareholder Kalahari Minerals, which reportedly has been in talks with China’s Guangdong Nuclear Power Holding Co’s uranium arm about a potential downstream offer.

Extract requested the trading halt pending an announcement following discussions between its 42.74% shareholder Kalahari and CGNPC Uranium Resources Co.

Last month, Extract made submissions to the country’s securities regulator after it heard of CGNPC’s offer for Kalahari.

At the time, London’s Sunday Times said Guangdong was reportedly offering £2.70 a share for Kalahari, lower than the £2.90 put on the table in March, before Japan’s Fukushima disaster drove down prices.

Under Australian law, companies making a fresh investment in a company must make a full takeover bid if their investment goes beyond 19.9%.

Extract’s Husab uranium project in Namibia, one of the world’s largest uranium deposits, is the key prize for the Chinese.

Rio Tinto also owns an 11% stake in Kalahari and holds 14% of Extract, with its Rossing uranium operation neighbouring the Husab property.

Shares in Extract were last trading at $A7.90.