Extract Resources raised a few eyebrows yesterday when it asked to delay its general meeting by three weeks from January 31 to February 21. It's reason? Well that's the interesting part.
"The board ... believes that as a result of such adjournment it may be able to give shareholders additional information that would be relevant for their consideration prior to the general meeting of shareholders," Extract told investors.
The company is due to release the definitive feasibility study over its Namibian uranium project this quarter but it's thought the release of the DFS alone isn't enough to justify moving the meeting and that something else is going on.
The key to what that something else is probably lies in the nature of the sole resolution to be considered at the meeting - a $60.9 million placement to Kalahari Minerals at $8.35 a share. Extract last traded at $8.93.
Kalahari, which was at one time slated to merge with Extract, owls about 43 per cent of the group, which is also backed by Rio Tinto and Japan's Itochu.
Stay tuned.
West Australian 29th January 2011 West Business Page 75 Herd on the Terrace
EXT Price at posting:
$8.93 Sentiment: LT Buy Disclosure: Held
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