There are two parts to the answer to this question. One of which...

There are two parts to the answer to this question. One of which is perfectly clear, the other we cannot know.

The first part of the answer is that it effectively consolidates Dattels control over Extract. IMO he already controls Kalahari, through his interests in URU and EML. By adding another 5.7% of direct shares, he virtually has control over the whole company (incidentally, should questions be asked about that?). RIO cannot get their JV deal without his agreement (if anyone on the Board disagrees with his view he can sack them, as he did with Buchan).

The second part is more mysterious: has Dattels got a buyer lined up, or is he taking a long term strategic stake? That we cannot know. I hope Peter Mc doesn't find his new partner too objectionable.

One bit of good news here. If Dattels feels that the risk/reward of doing more drilling is beneficial, before considering offers, then I'm sure he would encourage Peter Mc to do just that. Dattels will not be in a rush to sell, if such a sale doesn't realise full value.

I almost sympathise with RIO, who must be spitting feathers: if they approach Peter Mc (or Steve Galloway) & say "how about this JV?", Peter may have to say "sorry mate, our major s/hs won't let us discuss it until we've drilled more."

I see little reason for Polo to stop buying now. They have bought shares around the current price and have quite a bit of cash. Especially so, following this announcement today of an agreement for a JV with Peabody regading Polo's Mongolian coal interests: http://fool.uk-wire.com/cgi-bin/articles/200903310723207759P.html

"...Polo could potentially realise value from the transaction in excess of US$50 million..."

Per Polo's final results: http://fool.uk-wire.com/cgi-bin/articles/200812230700086142K.html

"...Working capital balance of US$78.9 million as at 19 December 2008..." [the balance sheet to 30 June 2008 shows cash of US$116m]

Obviously, there is an upper limit to the price they'll pay but we don't know what that figure is.

Polo has not made an announcement about the Extract purchases in the UK yet. I have informed the Polo ADVFN thread: http://www.advfn.com/cmn/fbb/thread.php3?id=18918136

Interesting times indeeed...

Good luck to other holders,

Mark