Kalahari Minerals plc – Placing to raise £41.76 million

Kalahari Minerals plc, the AIM listed resource company, announces that it has conditionally raised £41.76 million by way of a placing of 18 million new ordinary shares of 1 pence each in the capital of the Company, with existing shareholders at a price of 232 pence per Placing Share through the Company’s joint brokers Mirabaud Securities LLP and Ambrian Partners Ltd.  The proceeds of the Placing will be used to satisfy the private placing commitments with Extract Resources Limited announced on 9 December 2010, which will raise Kalahari’s interest in Extract to 42.83 per cent.
 
Kalahari Chairman, Mark Hohnen, said, “I am delighted to announce the Placing, which allows Kalahari to fulfil its commitments in regard to increasing our strategic shareholdings in Extract to 42.83 per cent.  Kalahari’s position in Extract remains of paramount importance as we enter the Company’s next phase of development, including our listing on the Official List of the UK Listing Authority, as we continue our unwavering support of Extract as it approaches its production phase at the world class Husab Uranium Project.
 
“Our shareholders have been actively petitioning us to maintain and increase our holding in Extract, as they recognise the value uplift potential of Extract and that Kalahari, which is trading at a discount to its holding in Extract, represents the best way to gain exposure to the Husab Uranium Project, as it develops towards becoming one of the world’s largest uranium mines.”
 
The Placing is conditional, inter alia, on admission of the Placing Shares to trading on AIM (‘Admission’).  Pursuant to the terms of a placing agreement between the Company, Mirabaud and Ambrian (‘the Placing Agreement’), Mirabaud and Ambrian have agreed to use reasonable endeavours to procure subscribers for the Placing Shares at the Placing Price. The obligations of Mirabaud and Ambrian under the Placing Agreement are conditional on admission of the Placing Shares being admitted trading on AIM.  It is expected that Admission will occur, and dealings in the Placing Shares will commence, at 8.00 a.m. on 16 December 2010.
 
The Placing represents approximately 7.93 per cent. of the issued share capital of the Company and following Admission, the Placing Shares will represent 7.35 per cent. of the enlarged issued share capital, which will then comprise 244,977,328 Ordinary Shares.
 
The Placing Shares will, when issued, rank pari passu in all respects with the existing issued Ordinary Shares, including the right to receive any dividends and other distributions declared following Admission