EXT - Extract Resources

[bigdog]

http://www.businessspectator.com.au...ahari-bid-after-pa-GQU4B?opendocument&src=idp

China drops Kalahari offer
Published 8:44 AM, 11 May 2011
Reuters

LONDON - China Guangdong Nuclear Power (CGNPC) withdrew its possible bid for Kalahari Minerals yesterday, scuppered by the Japanese nuclear crisis and a refusal by UK regulators to allow a lower offer.

State-owned CGNPC made an informal move on Kalahari in March - days before the Japanese earthquake - lured by access to one of the world's biggest uranium deposits at a time when major powers are scrambling for alternative sources of power.

But, in the light of uncertainties following the Fukushima nuclear disaster, both sides agreed last week to lower the initial 290 pence per share offer to 270 pence

Britain's Takeover Panel, however, said it would not allow CGNPC to turn a higher, informal offer, into a lower, formal bid. The panel's hearings committee upheld that ruling yesterday.

After the market close, CGNPC said that following the panel's ruling, it no longer wished to make an offer on the terms announced in March.

Kalahari owns a 43 per cent stake in Extract Resources, which owns the Husab uranium project in Namibia, potentially the second-largest uranium mine in the world.

Kalahari's shares closed down 0.9 per cent at 226 pence.

 

[bigdog]

Last Price ($A) $7.3800

This resource update is expected later in the current quarter.

http://www.proactiveinvestors.com.a...upcoming-resource-upgrade-at-husab-16475.html

Kalahari Minerals' Hohnen looks forward to upcoming resource upgrade at Husab
Saturday, May 21, 2011 by Jamie Ashcroft

Kalahari Minerals (LON:KAH) chairman Mark Hohnen believes an upcoming resource upgrade will further underpin the scale and quality of the Husab uranium project in Nambia.

The AIM-listed group is a major stakeholder in the project, via its 42.76 percent stake in Extract Resources (ASX:EXT, TSX:EXT) which is developing the massive uranium project – currently considered the third largest uranium deposit in the world.

Seventeen drill rigs are currently working to help Extract find out just how big the resource actually is, and an upcoming resource statement will incorporate some of the most recent results from the programme.

Hohnen said he is looking forward to the resource upgrade, which is scheduled for release this quarter.

His comments came in a short statement informing investors that a new NI43-101 technical report, relating to last month’s definitive feasibility study, has been published – the publication of the report is a regulatory requirement in Canada (where Extract is listed).

"Following the publication of the recent DFS, this report confirms the view that the Husab Project is world class,” Hohnen said.

Because of the recent on-then-off takeover bid from Chinese firm China Guangdong Nuclear Power Uranium Resource Co, and the further bid speculation that followed, it seems like the successful Husab DFS was published longer than six weeks ago.

On 5 April Hohnen declared that the study an endorsement of Kalahari’s faith in the project.

"The results of the DFS yet again prove that Husab is the most exciting new uranium project in the world today,” said Hohnen.

“The base case development map is now in place for Zones 1 & 2 to transform these into one of the three largest uranium mines in the world, producing 15 million pounds (Mlb) of uranium (U3O8) per annum via conventional open pit mining and a proven process flow sheet.

Extract said that the DFS supports the maiden reserve estimate for Zones 1 and 2, which gave it has 225 million pounds of contained uranium - from 205 million tonnes grading 497 parts per million.

The DFS put capital costs - including initial mine fleet, process plant and supporting infrastructure - at US$1.48 billion, while production costs - excluding royalties, marketing and transport - were estimated at US$28.5 per pound.

Hohnen added: "It has to be emphasised that the study is only a base case and Extract has set up the Mine Optimisation and Resources Extension programme (`M.O.R.E.') to increase the mine life and to investigate opportunities to add significant additional value through optimisation of the mine plan and process modifications, and to enhance the project's expected mine life, operating and financial performance.”

He also stressed that the new resource will include the infill drilling on Zones 1 and 2 and it is expected to convert inferred resources into the indicated category, as well as adding additional resources.

This resource update is expected later in the current quarter.

1127

 

[bigdog]

ASX Ann
07/06/2011 Husab Project Established as 4th Largest Uranium Deposit

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01187099

HUSAB PROJECT ESTABLISHED AS THE 4TH LARGEST URANIUM DEPOSIT IN THE WORLD

Highlights:
• Resource estimate updated, based on further results from continuing drilling programme at Husab Uranium Project.

• 33% increase in Total Global Resource since August 2010 resource estimate.
o Maiden Measured Resources in Zones 1 & 2 of 84 M.lbs U3O8.
o 39% increase in Zone 1 & 2 Measured and Indicated Resources to 358 M.lbs U3O8 (compared to August 2010 Indicated Resources).
o 18% increase in Inferred Resources to 130M.lbs U3O8, including definition of maiden Inferred Resource at Zone 5.

• Substantial increase in resource inventory represents first success from M.O.R.E. programme. An updated reserve estimate, based on the revised resource model, is scheduled for H2 2011 and is expected to demonstrate a significant increase in mine life.

• Extensive further exploration potential remains; Extract intends to maintain the pace of its drilling programme.

2226

 

[Mr Z]

and yet the news was greeted with more selling... says a lot about this market. IMO we must have just about flushed every low conviction holder of many of these stocks. This could/should be a good setup for a rally.... or the end of the world... again!

JMO

 

[bigdog]

http://au.news.yahoo.com/thewest/business/a/-/wa/10015268/extract-could-be-in-the-crosshairs-again/

Extract could be in the crosshairs again
KATE EMERY,
The West Australian August 11, 2011, 6:56 am

Extract Resources may again find itself in the corporate crosshairs after China's CGNPC Uranium was last night cleared to resume takeover talks with its biggest shareholder for a slice of what is arguably the most strategic uranium deposit in the world.

If CGNPC does launch an offer for London-listed Kalahari Minerals, which owns 42.8 per cent of Extract, Australia's corporate regulator could force it to launch a bid for Extract as well.

A move by CGNPC may also force the hand of other would-be suitors, rumoured to include Rio Tinto.

Gaius King, an analyst with London-based WHI Securities, said Extract would be a "very attractive takeover target for an integrated nuclear conglomerate".

"Despite claims to the contrary following the natural disaster at Fukushima, we do not subscribe to the theory that the sun is about to set on the nuclear industry," Mr King said in a note to clients.

"We predict that over the coming decades many Western nationals . . . will rescind recent populist comments and embark on a major civilian nuclear power replacement program.

"It is in this context that the investor should view its (Extract's) Husab uranium project, arguably the most important uranium discovery of the past three decades."

CGNPC and Kalahari Minerals were close to a £756 million ($1.2 billion) friendly deal in March before Japan's Fukushima nuclear disaster prompted the Chinese group to cut the price of its offer.

However, under British takeover law, CGNPC had to wait three months before it could table a new offer. That deadline expired last night, leaving the parties free to talk from today.

Extract shares are down about 20 per cent since CGNPC went public with its approach to Kalahari. They closed 49 ¢ higher at $7.20 yesterday.

5220

 

[bigdog]

http://au.news.yahoo.com/thewest/bu.../extract-advancing-financing-talks-for-husab/

Extract advancing financing talks for Husab
The West Australian
September 2, 2011, 1:10 pm

Uranium explorer Extract Resources says it is advancing financing talks for its $US1.66 billion Husab uranium project in Namibia, which is set to be the world's third-largest uranium-only mine.

Projects manager Andrew Penkethman also says Husab is set to become bigger with exploration success.

"Finance discussions are going well - there is a real appetite to be involved in this project," Mr Penkethman told the Africa Down Under conference in Perth.

"Husab is a giant... it is a globally strategic asset.

"With further work, the commercial significance of Husab can only increase."

The project contains the most significant uranium resource in Namibia and the fourth-largest in the world, he said, and ore reserve upgrades last month had extended the planned mine life from 16 years to more than 20 years.

The company, which is 14.2 per cent held by mining giant Rio Tinto, plans to release a further resource upgrade in the first half of 2012.

"There is additional value that can continue to be added to this project," Mr Penkethman said.

The mine is expected to produce 15 million pounds of uranium per year, from a total resource inventory of 513 million pounds.

Extract is waiting for the mining licence to be granted before it releases a detailed project timeline.

Mr Penkethman did not provide an update on talks with Rio, which started earlier this year, about jointly developing their neighbouring uranium assets in Namibia.

Rio's Rossing mine, some 6km from Husab, had been producing uranium grading 350 parts per million for 30 years.

6091

 

[bigdog]

http://www.perthnow.com.au/business.../story-e6frg2s3-1226162888534?from=public_rss

Extract Resources surges on China takeover talk

PERTH-BASED Extract Resources has called a trading halt to its shares as speculation rises that China could be making a $2.2 billion takeover offer.

In a note to the Australian Securities Exchange this morning, Extract advised that its shares would remain in a trading halt pending the release of an announcement relating to media speculation before the start of trade on Wednesday.

Prior to the trading halt, shares in Extract this morning surged more than 10 per cent to last trade at $8.86.

The quick share price gain follows a report in London over the weekend that China’s Guangdong Nuclear Power had restarted talks with London-listed Kalahari Minerals, which holds a 42.7 per cent stake in Extract.

The large shareholding means that should Guangdong make an offer for Kalahari, it would also have to launch a takeover for Extract, according to Australian laws.

Its speculated that Guangdong could launch a STG675 million ($1.07 billion) takeover for Kalahari as early as this week, which could result in a $2.2 billion offer for Extract.

Extract’s main asset is the Husab uranium project in Namibia, which borders Rio Tinto’s Rossing uranium operation. Husab is one of the world’s largest uranium deposits.

Rio Tinto holds a 14 per cent stake in Extract and an 11 per cent interest in Kalahari.

It’s not the first time Guangdong has shown a keen interest in Kalahari, with the Chinese company launching an offer earlier this year prior to Japan’s Fukushima nuclear disaster.

After that incident, Guandong tried to lower its offer price for Kalahari, a move blocked by Britain’s takeover panel.

Extract’s Husab project is expected to come online in 2014.

8023

 

[bigdog]

http://www.reuters.com/article/2011/10/27/extract-kalahari-china-idUSL3E7LR0C320111027

UPDATE 1-Kalahari sees China's CGNPC bidding for Extract Resources

Wed Oct 26, 2011 11:52pm EDT


* Confident on raising $2 bln to fund Husab uranium mine

* Extract in advanced talks on Husab project finance

* Kalahari, Extract confident on outlook for uranium

* Namibia mines minister expects to grant Husab mining license

By Sonali Paul

PERTH, Oct 27 (Reuters) - Kalahari Minerals , major shareholder in uranium developer Extract Resources , expects its Chinese suitor would eventually make a takeover offer for Extract, a $2 billion company, if it goes ahead with a bid for Kalahari.

"I don't think there is any suggestion ever that they would not want to do that. It's a matter of timing I would have thought," Kalahari Chairman Mark Hohnen told reporters on the sidelines of the Commonwealth Business Forum.

State-owned China Guangdong Nuclear Power Corp (CGNPC) is in talks for a potential takeover of Kalahari, with an announcement due by November 11 on whether a deal will go ahead.

Kalahari's main asset is its 43 percent stake in Extract, coveted for its Husab uranium project in Namibia, which could become the world's second-largest uranium mine.

Under Australian rules, CNGPC would be required to make a full takeover offer once it owns more than 20 percent of Extract, but the securities regulator can grant exceptions.

Extract last traded at A$7.86 share, and earlier this year hit a high of A$10.80 a share on speculation of a Chinese bid. However Hohnen said based on the valuation implied by Rio Tinto's takeover offer for Hathor Exploration , Extract was worth A$16 a share.

"If you look at a see-through on what Rio Tinto's bid for Hathor was, that puts a price of A$16 on an Extract share," he said.

Kalahari and Extract's shares were knocked after the Fukushima disaster in Japan in March hit uranium demand, but the two companies remain confident that uranium demand will be strong in the medium- to long-term, underpinned by demand from China, India, South Korea and Russia.

"We think the fundamentals of the uranium market are very strong," Extract Chief Executive Jonathan Leslie said at the Commonwealth Business Forum.

The Husab mine is due to start producing in 2014, just when supply gap is expected to emerge with new nuclear power stations coming on line in China, he said.

Hohnen and Leslie said they were confident Extract would be able to raise the $2 billion needed to fund development of Husab, even in the current tough market, given the attractiveness of the project and its access to infrastructure.

"So from our perspective, we're really very, very relaxed. The stand alone option's a fantastic option," Hohnen said.

Extract is in advanced negotiations on project finance, Leslie said, adding that the only question is whether it would involve less debt and more equity financing.

"No one's give us any doubt you could get this away," Leslie said.

He said the company was talking to a range of players on project financing, including Japanese shareholder Itochu Corp .

"We've never confirmed that, but it wouldn't be surprising to talk to one of our major shareholders," Leslie said.

Extract had hoped to receive the mining license for Husab earlier this year, and still hopes to secure approval from the Namibian government by the end of 2011.

Namibia's Mines and Energy Minister Isak Katali said he saw no big hurdles to the mining license being approved.

"The process is on and there seem to be no major issues," Katali told Reuters in an interview.

"We believe the license will eventually be granted," he said, declining to put a time frame on it.

 

[bigdog]

10/11/2011 Trading Halt
http://www.asx.com.au/asxpdf/20111110/pdf/422fhv6y8xr78n.pdf

http://au.news.yahoo.com/thewest/business/a/-/wa/11540901/extract-waits-on-cgnpc-bid/

Extract waits on CGNPC bid
KATE EMERY,
The West Australian
November 10, 2011,

Months of speculation over a $2 billion-plus Chinese bid for Extract Resources could come to a head within days, with the uranium explorer placing its shares in a trading halt this morning ahead of an announcement by its 42.7 per cent shareholder, London-listed Kalahari Minerals.

China's CGNPC Uranium Resources is in talks with Kalahari about a friendly takeover and under UK Takeover Panel rules an update was expected by November 11.

Kalahari's major asset is its stake in Extract, owner of the Husab project in Namibia - one of the biggest undeveloped uranium deposits in the world.

Under Australian regulations, if CGNPC bids for Kalahari it will also be forced to bid for Extract on similar terms because it would breach the 19.9 per cent takeover threshold. However, the corporate regulator does have the right to grant exceptions.

A move by CGNPC may also force the hand of other would-be suitors, rumoured to include Rio Tinto, which holds stakes in Kalahari and Extract.

CGNPC and Kalahari Minerals were close to a £756 million friendly deal in March before the Fukushima nuclear disaster prompted the Chinese group to cut the price of its offer.

However, under British takeover law, CGNPC had to wait three months before it could table a new offer. That deadline expired in August.

Extract shares last traded at $7.90, valuing the company at $1.9 billion. In requesting a trading halt the group said it was waiting for a Kalahari announcement "relating to the discussions between CGNPC Uranium and Kalahari Minerals".

0475

 

[bigdog]

ASX Ann Released by ASX : 6:55 p.m. 10th November 2011

Update on discussions between Kalahari Minerals and CGNPC
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01239807

---------------------------------------------------------------------------------------------------------------
http://www.proactiveinvestors.com.a...npc-deal-worth-24355-pence-a-share-21893.html

Kalahari Minerals says CGNPC deal worth 243.55 pence a share
Friday, November 11, 2011

CGNPC Uranium Resources has tabled a 243.55 pence a share, or £611 million bid for Kalahari Minerals (LON:KAH).

The details of the revised price were revealed as the Kalahari said talks were still ongoing, but warned there was no certainty a final offer would be made.

Earlier this year CGNPC-URC tabled a 290 pence a share, or £756 million offer for Kalahari, which owns a 42.7 per cent interest in Extract Resources (ASX:EXT, TSX:EXT).

A 270 pence offer, renegotiated in the wake of the Fukushima nuclear disaster, was blocked by the Takeover Panel and the deal fell through.

The Chinese renewed their interest last month with a new approach.

CGNPC-URC has until 5pm on December 8 to say whether it will formally lodge a takeover bid for Kalahari.

Extract is developing the world class Husab Uranium project in Namibia.

Today the Kalahari said: “ The board of Kalahari believes that CGNPC-URC's leading position in the Uranium sector makes it a suitable partner for the realisation of the full potential of the Husab Uranium project to the benefit of all stakeholders.”

----------------------------------------------------------------------------------------------------
KAH ANNOUNCEMENT:
10 November 2011

Kalahari Minerals plc (‘Kalahari’ or ‘the Company’) Update regarding CGNPC-URC Possible Offer Discussions

THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER UNDER RULE 2.7 OF THE CITY CODE. THERE CAN BE NO CERTAINTY THAT ANY OFFER WILL BE MADE.

Further to the announcement on 10 October 2011, Kalahari confirms that it remains in discussions with CGNPC Uranium Resources Co., Ltd (“CGNPC-URC”) in relation to a possible offer for the entire issued share capital of the Company. The possible offer is a cash offer at a price of 243.55 pence per share, but there can be no certainty that an offer will be made for the Company.

Kalahari’s key asset is a 42.74% interest in Extract Resources Limited, owners of the world class Husab Uranium Project in Namibia . The Board of Kalahari believes that CGNPC-URC’s leading position in the uranium sector makes it a suitable partner for the realisation of the full potential of the Husab Uranium Project to the benefit of all stakeholders.

Since 6 months have now elapsed since the announcement on 10 May 2011 by CGNPC-URC under Rule 2.8 of the City Code on Takeovers and Mergers (the "Code"), CGNPC-URC is no longer restricted by Rule 2.8 of the Code. Notwithstanding the lifting of these restrictions on CGNPC-URC, the two parties are in discussions with the intention of reaching agreement on a recommended offer for the Company.

In view of the fact that CGNPC-URC is now no longer subject to the restrictions of Rule 2.8 of the Code, CGNPC-URC is now subject to Rule 2.6(a) of the Code. As required by Rule 2.6(a) of the Code, CGNPC-URC must, by no later than 5.00pm on 8 December 2011, either announce a firm intention to make an offer in accordance with Rule 2.7 of the Code, or that it does not intend to make an offer for the Company in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of the Takeover Panel in accordance with Rule 2.6(c) of the Code.

However, these discussions may or may not lead to an offer being made and a further announcement will be made in due course.

This announcement has been made with the consent of CGNPC-URC. For the purposes of Rule 2.5(a), CGNPC-URC reserves the right to make an offer at any time at a value below 243.55 pence per share with the agreement and recommendation of the board of Kalahari

0560

 

[Mr Z]

Lets see.... an underwhelming offer that translates to $8.86 AUD on the table and we sell down from $7.90?





Gotta love this market!

 

[bigdog]

EXT $7.930 $+0.100 +1.28% @ Tue 29 Nov 2011 10:55 AM

ASX ANN
29/11/2011 Response to press speculation
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01246904

ASX/MEDIA RELEASE

Response to press speculation

November 29, 2011: Further to recent media speculation, Extract Resources Ltd (ASX/TSX/NSX: EXT) ("Extract") confirms that it is aware that discussions have taken place between CGNPC Uranium Resources Co. Ltd. (“CGNPC-URC”) and Epangelo Mining Company (Pty) Ltd (“Epangelo”), a wholly state owned Namibian enterprise, in relation to a possible acquisition by Epangelo of a 10% interest in the Husab Uranium Project. However, Extract notes that any agreement between CGNPC-URC and Epangelo would need to be conditional on CGNPC-URC having acquired a controlling interest in Extract’s 100%-owned Husab Project.

Separately, discussions between Extract and Epangelo are well advanced around the possible acquisition on commercial terms by Epangelo of a 10% interest in the Husab Project, irrespective of whether or not any transaction involving CGNPC-URC occurs.

About Extract Resources Extract Resources Ltd is an international uranium exploration and development company whose primary focus is in Namibia. The company’s principal asset is its 100% owned Husab Uranium Project which contains the fourth-largest uranium-only deposit in the world. Extensive exploration potential also exists for new uranium discoveries in the region. Extract Resources is listed on the Australian (ASX), Toronto (TSX) and Namibian (NSX) Stock Exchanges.

1503

 

[bigdog]

What many hae been waiting for!!!

EXT $8.050 $+0.100 +1.26% @ Wed 30 Nov 2011 12:44 PM

ASX ANN -- 30/11/11 09:44
Mining Licence Application - Update
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01247643

ASX/MEDIA RELEASE
MINING LICENCE APPLICATION - UPDATE

November 30, 2011:
Extract Resources Ltd (ASX/TSX/NSX: EXT) ("Extract") is pleased to announce that the Ministry of Mines and Energy of the Republic of Namibia has provided to Swakop Uranium, a wholly owned subsidiary of Extract, a notice of preparedness to grant a Mining Licence for the Husab Uranium Project.

Swakop Uranium has accepted the terms and conditions contained within the notice of preparedness. Therefore, in accordance with the Minerals (Prospecting and Mining) Act, 1992, the Minister of Mines will now direct the Mining Commissioner to issue a Mining Licence to Swakop Uranium.

The area covered by the Mining Licence (ML171) is contained within Extract’s existing exploration concession, EPL3138, and includes reserves defined to date within Zones 1 and 2 of the project, mineral resources defined within Zones 1 to 5, and the Middle Dome and Salem prospects (see Figure 1).

Extract intends to maintain its resource definition drilling and exploration programme throughout EPL3138 and within the neighbouring EPL3439.

Extract CEO and Managing Director Jonathan Leslie said:

“We are delighted to receive the notification of preparedness to grant a Mining Licence. This marks the final step to achieving all of the permits that we need in order to begin the development of the Husab Uranium Project.

“Discussions with potential debt financiers of the project are well underway, and the company continues to evaluate offtake arrangements and opportunities for investment in the project by strategic partners. Plans for delivery of access, power and water infrastructure are well advanced. Meanwhile, the MORE programme continues to deliver results that increase the mine life through definition of further reserves, and that optimise the design of the processing plant and mining operations.

“I would like to acknowledge the support shown for the development of the Husab Project by the Namibian Government, in particular the Ministry of Mines and Energy, and the Ministry of Environment and Tourism.”

1740

 

[bigdog]

Where will the SP will finish today???

Mining Licence Issued for Husab Uranium Project
9:19 a.m. 1st December 2011
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01248452

ASX/MEDIA RELEASE
MINING LICENCE ISSUED FOR HUSAB URANIUM PROJECT

December 1, 2011: Extract Resources Ltd (ASX/TSX/NSX: EXT) ("Extract") is pleased to announce that the Ministry of Mines and Energy of the Republic of Namibia has now issued the Mining Licence (ML171) for the Husab Uranium Project.

Issuance of the Mining Licence follows the receipt by the company of a notice of preparedness, as announced on November 30, 2011, and the acceptance by Swakop Uranium (Pty) Ltd, a wholly owned subsidiary of Extract and the holder of the licence, of the terms and conditions contained therein.

ML171 covers an area of 110.1 km² within Extract’s existing exploration concession, EPL3138, and is issued in respect of Nuclear Fuels including reserves defined to date within Zones 1 and 2 of the project, mineral resources defined within Zones 1 to 5, and the Middle Dome and Salem prospects (see Figure 1). The Mining Licence is valid for a period of twenty five years from the date of issue, unless abandoned, cancelled or extended in compliance with the Minerals (Prospecting and Mining) Act, 1992.

Extract CEO and Managing Director Jonathan Leslie said:

“We are delighted to have received the Mining Licence for the Husab Project so soon after the Notice of Preparedness. This is the last stage to achieving all of the permits we need in order to develop Husab, the world’s fourth largest primary uranium deposit. Extract looks forward to developing its world class asset with Namibians, for Namibia.”

1962

 

[golfmos123]

Bigdog,

As the resident expert on EXT, what do you think will happen with the Chinese and their bid which needs to be in by Dec 8?? I presume there will be upside to around the $9 mark if the bid comes in, but what do you think there might be in downside risk if the bid doesn't eventuate???

 

[bigdog]

RIO owns about 19% of EXT (14.2% direct & indirect via Kalahari) and their uranium mine is next to the EXT site.

I hope that RIO will end up controlling EXT and outbid all including the Chinese, Russians and French!

The licence was approved last week and we all wait for the Chinese Dec 8 (UK time) milestone (perhaps the first bid)!

The top 20 shareholders control 90.4% of the company
-- Kalahari & RIO own about 57% of EXT
-- 24 million shares or 9.6% are owned outside of the top 20

I have been with EXT since 2005.

 

[bigdog]

ASX ANN 9:51 a.m. 8th December 2011 TRADING HALT
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01251045


CGNPC have to make an offer by close of play tomorrow, failing which they are out of the picture for six months.

The indictaed potential offer at £2.43 is low now that the licence has been issued.

I can't see CGNPC making a bid at a price that is not supported by the board as there is little chance it could succeed with so many shares tied up with the decision makers.
------------------------------------------------------------------------------------------------------------------------
http://www.perthnow.com.au/business.../story-e6frg2s3-1226217088075?from=public_rss

EXTRACT Resources has called a trading halt as the deadline looms for takeover talks between its major shareholder, Kalahari Minerals, and China.

The Perth-based company today said it expected to make an announcement regarding the talks by the start of local stock market trade on Monday or earlier.

The market is eagerly waiting on the outcome of takeover talks between Extract’s 42.74 per cent shareholder, Kalahari, and China Guangdong Nuclear Power Corp (CGNPC), with Extract today saying an announcement will be made on the London Stock Exchange.

Under Australian takeover rules, should CGNPC make a bid for Kalahari, it must also make an offer for Extract.

Extract’s main asset is the Husab uranium project in Namibia, considered to be one of the world’s largest deposits of the commodity.

It has been previously reported that an offer for Extract could value the company at around $2.2 billion.

Dow Jones Newswires has reported that CGNPC has until the end of Thursday (London time) to make a firm offer for Kalahari, unless the UK Takeover Panel agrees to extend the deadline.

Kalahari has previously said CGNPC may make a cash offer of 243.55 pence a share.

Shares in Extract last traded at $8.09 before the trading halt was called

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http://www.telegraph.co.uk/finance/...er-by-China-Guangdong-Nuclear-Power-Corp.html

Kalahari close to £600m takeover by China Guangdong Nuclear Power Corp

Kalahari Minerals was in focus amid talk China Guangdong Nuclear Power Corp is close to finalising its £610m takeover of the uranium mining company.

By Ben Harrington
11:24PM GMT 07 Dec 2011

The two have been in talks for several months about a deal. Discussions have progressed well in recent weeks, with Aim-listed Kalahari saying in November it was in negotiations about an offer valuing the mining group at 243p a share.

However, Kalahari also warned last month that there can "be no certainty that an offer will be made for the company".

Traders said a formal offer for Kalahari – whose key asset is a 42.74pc interest in Extract Resources Limited, owner of the world-class Husab Uranium Project in Namibia – was due to be unveiled as early as this morning. ("THURSDAY MORNING UK TIME").

Kalahari, whose shares have been rising recent weeks, perked up 2 ½ to 235p.

2498

 

[bigdog]

WITH ONLY 6.1% INDICATED ACCEPTANCES, THEY WILL NEED THE BIG SHAREHOLDERS TO SELL THEIR SHARES.

THE MAJOR SHAREHOLDERS THEY NEED TO CONVINCE ARE RIO, APAC, NIPPON URANIUM, AND M&G WHO BETWEEN ALL OF THEM OWN OVER 50% OF KAH,

IMO THIS WILL BE HARD TO ACHIEVE AT THIS BARGIN PRICE AND ALSO RIO'S 19% HOLDING IN BOTH EXT & KAH

"The Offer will be conditional on, inter alia, acceptances being received in respect of more than 50 per cent. of Kalahari Shares on a fully diluted basis."

the Kalahari Directors intend unanimously to recommend that Kalahari Shareholders accept the Offer, as the Kalahari Directors have irrevocably undertaken to do, in respect of their own beneficial holdings, amounting, in aggregate, to 5,518,813 Kalahari Shares, representing approximately 2.2 per cent. of Kalahari's issued ordinary share capital.

Letters of intent to accept or procure the acceptance of the Offer have also been received from certain Kalahari Shareholders amounting, to 9,839,083 Kalahari Shares, representing approximately 3.9 per cent. of Kalahari's issued ordinary share capital."


http://www.kalahari-minerals.com/News/Latest_News/Recommended_Cash_Offer/News.aspx?id=300

Recommended Cash Offer
08 December 2011

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION
8 December 2011

RECOMMENDED CASH OFFER

BYTAURUS MINERAL LIMITED (“Taurus”)(a company formed at the direction of CGNPC Uranium Resources Co., Ltd. (“CGNPC-URC”) and The China-Africa Development Fund (“CADFund”))FORKALAHARI MINERALS PLC (“Kalahari”)

Summary

• Further to the announcement on 10 November 2011 that Kalahari and CGNPC-URC remained in discussions in relation to a possible offer, the boards of Kalahari and CGNPC-URC are pleased to announce that they have reached agreement on the terms of a recommended cash offer for the entire issued and to be issued share capital of Kalahari (the “Offer”).
  
• Under the terms of the Offer, Kalahari Shareholders will receive 243.55 pence in cash for each Kalahari Share (the “Offer Price”). The Offer Price values Kalahari's fully diluted share capital, including shares attributable to Options at approximately £632 million.
  
• The Offer will be conditional on, inter alia, acceptances being received in respect of more
• than 50 per cent. of Kalahari Shares on a fully diluted basis.

The Offer Price represents:

• a premium of approximately 16.1 per cent. to the average Closing Price of 209.7 pence per Kalahari Share for the six months prior to and including 4 March 2011, being the latest practicable Business Day prior to the first announcement by CGNPC-URC of a possible offer for Kalahari; and
  
• a discount of approximately 1.0 per cent. to the Closing Price of 246 pence per Kalahari Share on 7 October 2011, being the latest practicable Business Day prior to the commencement of the Offer Period.
  
• The Offer Price has been determined on the basis that no dividend in respect of the Kalahari Shares will be declared or paid by Kalahari after the date of this announcement.
  
• Taurus is a newly incorporated company and formed at the direction of, and indirectly owned by, CGNPC-URC and CADFund.
  
• CGNPC-URC, a state-owned enterprise in the PRC, has established strong relationships with domestic and overseas manufacturers and suppliers of natural uranium. An acquisition of Kalahari is in line with its ongoing strategy to support development of important new sources of natural uranium supply.
  
• CADFund is an equity investment fund, indirectly 100 per cent. owned by China Development Bank Corporation (“CDB”), which aims to support and encourage Chinese companies in developing cooperation with Africa and making investment in Africa.
  
• Kalahari is an AIM and NSX listed resource company with uranium, gold, copper and other base metal interests in Namibia. Kalahari’s key asset is its holding of 42.5 per cent. in ASX, TSX and NSX listed Extract Resources Limited (“Extract”) (on a fully diluted basis). Extract is progressing towards development of the Husab Uranium Project, strategically located within a 50 kilometre radius of several world class uranium deposits.
  
• The Kalahari Directors, who have been so advised by Azure Capital Limited (“Azure”) and Ambrian Partners Limited (“Ambrian”), consider the terms of the Offer to be fair and reasonable to Kalahari Shareholders. In providing their advice, Azure and Ambrian have taken into account the commercial assessments of the Kalahari Directors.
  
• Accordingly, the Kalahari Directors intend unanimously to recommend that Kalahari Shareholders accept the Offer, as the Kalahari Directors have irrevocably undertaken to do, in respect of their own beneficial holdings, amounting, in aggregate, to 5,518,813 Kalahari Shares, representing approximately 2.2 per cent. of Kalahari's issued ordinary share capital.
  
• Letters of intent to accept or procure the acceptance of the Offer have also been received from certain Kalahari Shareholders amounting, to 9,839,083 Kalahari Shares, representing approximately 3.9 per cent. of Kalahari's issued ordinary share capital.
  
• It is intended that the Offer is to be effected by means of a takeover offer within the meaning of Part 28 of the Companies Act. The Offer Document, containing further information about the Offer, together with the Form of Acceptance, will be posted to Kalahari Shareholders and (for information purposes only) to holders of Options as soon as practicable (and, in any event, not later than 5 January 2012 unless otherwise agreed with the Panel).

Zhiping Yu, CGNPC-URC's Managing Director said:“We are delighted to have secured the support of the Kalahari Directors, as we believe this highlights both the attractive value of the Offer and CGNPC-URC's status as an excellent partner for the future development of the Husab Uranium Project.”
Commenting on the Offer, Mark Hohnen, Kalahari's Executive Chairman said:“The Husab Uranium Project is a world class uranium asset that has tremendous strategic importance in the industry due to its quality and scale. In the light of the unexpected circumstances in Japan and their impact on uranium equities, the Kalahari Directors recognises the altered market dynamic and subsequently views the Offer from CGNPC-URC as attractive. The Kalahari Directors view CGNPC-URC as an excellent partner for the realisation of the full potential of the Husab Uranium Project to the benefit of all stakeholders.”

This summary should be read in conjunction with, and is subject to, the full text of the following announcement (including its appendices).

The Offer will be subject to the Conditions and further terms set out in Appendix I to this announcement and to the terms and conditions to be set out in the Offer Documentation when issued. Appendix II contains the bases and sources of certain information used in this summary and the following announcement. Appendix III contains details of the irrevocable undertakings and letters of intent referred to in this announcement. Appendix IV contains definitions of certain terms used in this summary and the following announcement. Appendix V contains an outline of the formula applied in setting the Extract Offer Price, as described in paragraph 17.

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[bigdog]

http://www.businessday.com.au/business/uranium-miner-faces-chinese-power-play-20111209-1onq1.html

Uranium miner faces Chinese power play
Greg Roberts
December 10, 2011

THE corporate watchdog says a Chinese state-owned power company has to launch a $2.2 billion takeover for Australian uranium company Extract Resources if the Chinese group is successful in its bid for Extract's 43 per cent shareholder.

China Guangdong Nuclear Power Group Uranium Resources Company launched a friendly takeover bid overnight on the London Stock Exchange offering £632 million ($A979 million) for Extract's main shareholder, Kalahari Minerals, which owns 43 per cent.

Under Australia's stock exchange rules CGNPC would then have to follow the Kalahari offer with a bid for Extract because it would own more than 20 per cent of its shares.

Perth-based Extract said yesterday that CGNPC would be required to offer shareholders $8.65 a share, as it had received a ruling from the Australian Securities and Investments Commission that CGNPC had to make a bid under Australian regulations.

Shares in Extract Resources rose 38 ¢, or 4.7 per cent, to $8.47 yesterday.

The key motivation for CGNPC targeting Kalahari is gaining access to the Extract-owned Husab uranium deposits in Namibia, the fourth-largest in the world. China wants new sources of uranium to help shore up resource security. It is the world's largest energy user and keen user of nuclear power.

Extract yesterday said it had been lobbying ASIC for the takeover requirement and was pleased to have received it. But Extract also suggested there were alternatives to CGNPC's takeover.

Rio Tinto operates the neighbouring Rossing uranium mine and owns 14 per cent of Extract, making it the second-biggest shareholder.

''The company has received a strong level of interest in Husab from potential strategic investors,'' it said. ''These discussions are continuing and include a range of possible investment structures.''

Last week, the Namibian government granted a mining licence to Extract to exploit the Husab deposit in a $1.5 billion project. The government said the project would contribute 5 per cent to Namibia's gross domestic product and 20 per cent to exports, with a mining life of 20 years, the project's chief executive Norman Green said.

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[bigdog]

I hope that there are other bidders!

http://www.miningmx.com/news/energy/Rio-Tinto-a-likely-Husab-partner.htm

Rio Tinto a likely future partner at Husab
André Janse van Vuuren | Fri, 09 Dec 2011 17:38

[miningmx.com] -- RIO Tinto could enter into another partnership with a Chinese firm, this time in Namibia, where its Rossing uranium mine would give it an edge to be the preferred partner as China swoops on another strategic asset.

A consortium consisting of the China Guangdong Nuclear Power Group (CGNPC) and the China-Africa Development Fund on Thursday made a £632m bid for Kalahari Minerals, which has a 42.74% stake in ASX-listed Extract Resources as a key asset.

Extract owns the Husab uranium project in Namibia – the world’s fourth largest uranium deposit - and was last week granted a mining licence to proceed with the $1.65bn development of the mine, which would produce 15 million pounds uranium per year for an initial 16 years.

In addition to its offer for Kalahari, the bidding consortium said it would make an A$8.65/share bid for Extract should the majority of Kalahari’s shareholders accept its price. Kalahari’s board has recommended the consortium’s offer.

Rio, which in the past has been touted as another potential suitor for Kalahari and Extract, already owns a stake of 11% and 14% in the two companies respectively.

The Husab project was known as Rössing South until Extract renamed the project late last year to avoid confusion with Rio’s existing Rössing uranium mine, six kilometres to the north. Rio saw Rossing’s latest life of mine plan continuing operating to 2023; although it would require a large increase in stripping for the next three years to open up new areas of the pit.

RBC Capital Markets analyst Des Kilalea, told Miningmx on Friday it would be unlikely for Rio to turn hostile with a counter bid for Husab, saying some tie-up between CGNPC and Rio would make the most sense for both parties - with Rossing able to offer cost-saving synergies to future operations at Husab.

“At some point they may come in as a partner in the transaction,” said Kilalea. “How that will come to be is unclear. But I would thought that in an ideal world Rio would be the operator and provide some of the capital.”

Fairfax analyst John Meyer concurred, saying the share price of both Extract and Kalahari suggested the market was not expecting an offer from a third party.

“There may…be a way for Rio to be involved in the Extract uranium asset as an operator through some joint arrangement with CNGPC, whose main business is a utility and not an operator of mines,” Meyer said in a note to clients.

Kilalea pointed to Rio’s well-established relationships with Chinese firms – Chinalco is Rio’s biggest single shareholder and partner at the Simandou iron ore project in Guinea, as an example.

Uranium also forms part of Rio’s core commodities. Kilalea branded Rossing as getting “long in the tooth”, and described the recently acquired Hathorn – with significant uranium exploration assets in Saskatchewan, Canada - as a “long dated” prospect.
“They would be able to get going at Husab much sooner,” he said.

CARRY ON
CNGPC’s bid for Kalahari is at a 16.1% premium to the average closing price over the last six months – 16% lower than the initial offer by the consortium six months ago, prior to the Fukushima nuclear disaster in Japan.

Extract, meanwhile, said it didn’t take part in the discussions between the consortium and Kalahari, and would continue with its own plans to develop Husab.

“…the company has received a strong level of interest in Husab from potential strategic investors,” Extract said in a statement. “These discussions are continuing and include a range of possible investment structures.”

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