Kalahari Minerals – Requisition to Extract Resources

Kalahari Minerals – Requisition to Extract Resources

Kalahari Minerals plc, the AIM listed mining exploration and evaluation group with a portfolio of uranium, copper and base metal interests in Namibia, confirms that it has sent a notice of requisition to Extract Resources Limited regarding a change in its Board structure.  This move has been taken partly as a result of the breakdown of an initiative agreed on the 18 May between Extract and Kalahari, whereby Extract would move its executive and administrative base to Namibia in order to continue the development of its world class uranium assets.  As part of this agreement, CEO Peter McIntyre had agreed to step down in order for a new CEO to be appointed who would be based in Namibia. 

The Board of Kalahari believes that Extract is at a key stage in its development whereby it is imperative that its executive team be based in country.  Indeed Kalahari has been instrumental in bringing more of a Namibian presence to the Board of Extract through the appointment of Namibian nationals, Chairman Steve Galloway and Non-executive Director Inge Zaamwani-Kamwi.  The Board believed that a relocation was necessary in order to fully realise the potential of Extract’s exceptional uranium assets and as a result, approached the Board of Extract to implement such an initiative. 

The Board of Kalahari is therefore disappointed with the reaction of Extract towards this initiative, and believes that this and other prior actions taken by Peter McIntyre are prejudicial to the interests of Kalahari and its shareholders.  The Company has always been committed to ensuring that its interest in Extract is protected and has been supportive of all initiatives aimed at generating value from the development of Extract’s world class assets.  It remains committed to realising value for its shareholders with its strategic stake in Extract.

In response to Extract’s announcement today regarding the legalities of Kalahari’s action, counsel has been sought regarding the issue of a requisition and the notice of intention in respect of resolutions to remove Peter McIntyre as a director of Extract and to appoint Mark Hohnen as a non executive director of Extract.  The Board has been assured by its lawyers that it is not contrary to and does not involve a breach of the terms of the agreement dated 25 February 2009.  Furthermore, the Board is advised that any restrictions on Kalahari issuing a requisition regarding a Board change for Extract on the 25 February 2009 agreement lapsed after three months.

Kalahari Chairman Mark Hohnen said, “Our intention is to ensure that the value of Extract’s world class assets, particularly the Rossing South discovery are maximised.  We see that the relocation of Extract and its management to Namibia is imperative at this stage of its development, and something that we believed was agreed between all parties as being beneficial.  We are therefore naturally disappointed with the current situation and have been forced to issue a requisition in an attempt to ensure that these initiatives are implemented.” 

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