09/03/2009 - 15:11

Extract, Kalahari settle out of court

09/03/2009 - 15:11

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Kalahari Minerals has withdrawn legal proceedings against Extract Resources following a unanimous agreement to appoint a new chairman and the resignation of two directors.

Kalahari Minerals has withdrawn legal proceedings against Extract Resources following a unanimous agreement to appoint a new chairman and the resignation of two directors.

Non-executive director Stephen Galloway has been appointed as non-executive chairman, following Rob Buchan's removal by an extraordinary meeting last month that was requisitioned by Kalahari.

Steve Sikirich, who sought the removal of directors Neil MacLachlan and Peter Meagher, has resigned from his non-executive director position. Mr Sikirich has also withdrawn his removal request.

Mr Meagher has also stepped down from his non-executive director position.

Kalahari had sought the removal of newly appointed non-executive director John Main, who had close links to Rio Tinto which is a major shareholder in Extract.

Mr Main will stay on Extract's board as will Mr MacLachlan, who is Kalahari's representative, and managing director Peter McIntyre.

Extract said it is looking to add another board member.

 

 

The announcement is below:

 


Extract Resources Limited (the Company) advises that under unanimous agreement reached between all members of the board and with Kalahari Minerals plc (Kalahari) and its subsidiaries, board changes as follows have now been implemented:-

- Mr Steve Galloway (a director since July 2008) is now appointed as an independent non-executive chairman of the Company, having resigned from the board of Kalahari. (Further information on Mr Galloway's experience is included below).

- Mr Peter Meagher has resigned from his position as a non-executive director.

- Mr Steve Sikirich has resigned from his position as a non-executive director.

The Board will initially consist of 4 members - Mr Steve Galloway (Independent - Non-Executive Chairman), Mr John Main (Independent - Non-Executive), Mr Neil MacLachlan (Kalahari nominee - Non-Executive) and Mr Peter McIntyre (Managing Director). Going forward it has been agreed to consider a suitable addition to strengthen the Company's Namibian focus and such appointment will be announced in due course.

Also under the agreement reached Kalahari has undertaken to seek dismissal of all current legal action pertaining to the appointment of Mr John Main and has given the Company notice that its request to call for a meeting to remove Mr Main and Mr Sikirich has been withdrawn.

Likewise, Mr Sikirich has advised the Company that he has withdrawn his request for the Company to proceed with calling a meeting to remove Mr Meagher and Mr MacLachlan.

The Board wishes to acknowledge the significant contributions of Mr Meagher and Mr Sikirich, both of whom were original directors of Extract with both having played an integral part in supporting the Company through its various stages of development. Mr Meagher and Mr Sikirich have contributed to the decisions that have led to the Company's now obvious successes.

The Board thanks them both on behalf of all shareholders for their contributions towards the Company having made one of the world's most promising uranium discoveries in decades.

The Board is very pleased that it can now put this dispute behind it and move forward in tune with its management and staff to continue progressing its world class projects to the next level.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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