25/05/2009 - 09:49

Extract, Kalahari in another dispute

25/05/2009 - 09:49

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Trading of Extract Resources shares have been halted as the South Perth-based company reveals it is in another dispute with its major shareholder Kalahari Uranium.

Trading of Extract Resources shares have been halted as the South Perth-based company reveals it is in another dispute with its major shareholder Kalahari Uranium.

In a trading halt request to the stock market, the company said it is in a "dispute" with Kalahari and "advice and clarification is being sought in relation to this matter".

The company said it expects to release further details before the start of trade on Wednesday.

Shares in Extract last traded at $5.01.

Kalahari, which is listed in London, holds a 39.1 per cent stake in Extract.

Earlier this year, Extract faced legal action by Kalahari over the appointment of non-executive director John Main due to his close links with Rio Tinto, another major shareholder in Extract.

Last year, Extract and Kalahari had agreed to a friendly merger however that was canned as Rio bumped up its stake in Extract and Kalahari shareholders were not in favour of the tie-up.

Extract is advancing its Rossing South uranium project in Namibia, which adjoins Rio's Rossing uranium operation.

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