05/09/2008 - 15:16

Extract in merger deal with Kalahari

05/09/2008 - 15:16

Bookmark

Save articles for future reference.

South Perth-based uranium company Extract Resources Ltd has entered into a merger agreement with London-listed Kalahari Minerals Ltd in a scrip deal worth over $210 million.

Extract in merger deal with Kalahari

South Perth-based uranium company Extract Resources Ltd has entered into a merger agreement with London-listed Kalahari Minerals Ltd in a scrip deal worth over $210 million.

In an announcement released after market close, Extract has recommended a scheme of arrangement to merge both companies, with the combined entity to be dual listed on the local stock market and London's Alternative Investment Market.

Under the restructure implementation agreement, West Perth-based Kalahari will offer 1.6 of its shares for each extract share, valuing the latter company's share price at 99 cents.

Kalahari currently holds a 39.11 per cent stake in Extract and both companies hold projects in Namibia.

Extract directors have unanimously voted in favour of the merger, in the absence of a superior offer.

"We believe that simplifying our corporate structure and combining the resources of both companies will deliver short, medium and longer term benefits to shareholders of both companies," Kalahari executive chairman Mark Hohnen said.

"Critically, shareholders of both companies will retain their exposure to the Husab Uranium Project, particularly Rossing South, and Extract's shareholders will gain access to our portfolio of copper and base metal prospects in Namibia.

"As one of the largest uranium explorers by market capitalisation on AIM post the Restructure, we can look forward to developing all our projects with support and confidence."

On completion of the restructure, Extract director Peter McIntyre will take the managing director role of the combined group.

A meeting for Extract shareholders for approval of the merger is expected to be held in November.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options