Kalahari Minerals – Agreement to Increase Interest in Extract Resources Ltd
Kalahari Minerals plc, the AIM listed resource company, announces that its wholly owned subsidiary Kalahari Uranium Limited has conditionally agreed to subscribe, by way of a private placement, for 7,299,069 ordinary shares in Extract Resources Limited. The Placing is conditional, inter alia, upon Extract receiving confirmation from the Australian Stock Exchange that it will not exercise its discretion under ASX Listing Rule 10.11(ii), or, if this is not forthcoming, Extract shareholder approval. The Placing, which has been initiated by Kalahari, will raise Kalahari Uranium’s total interest in Extract to 107,342,087 shares, representing 42.83% of Extract’s enlarged share capital and is in line with the Company’s strategy to maintain, and where possible, increase its holding in Extract.
Under the terms of the Placing, which is expected to complete on or before 7 January 2011, or at a later date if shareholder approval is required, Kalahari Uranium has agreed to subscribe for the Placing Shares for a total consideration of A$60.9 million at a price of A$8.35 per Placing Share, representing a 5% discount to the 3-day VWAP of Extract shares from 3 December 2010 to 7 December 2010.
Kalahari’s Executive Chairman, Mark Hohnen, said, “The Placing, initiated by us to increase our stake in Extract, reiterates Kalahari’s unwavering commitment to the continued development of Extract, both operationally and corporately. Our ongoing support for Extract’s development schedule for the world-class Husab Uranium Project underpins our confidence that it will become one of the world’s largest uranium mines and, through our position as major strategic shareholders, we are steadfast in our aim to see Husab develop its full potential for the benefit of all stakeholders."
“Importantly, the crucial need to maintain and, where possible, increase our interest in Extract is understood and supported by our shareholder base, who actively petition us to do so.”