South Perth-based uranium company Extract Resources' proposed merger agreement with London-listed Kalahari Minerals has been terminated.
Kalahari formally advised Extract that it does not have the support of a number of its largest shareholders and consequently it will not be able to meet its obligations in the merger deal.
In an announcement released in September, Extract had recommended a scheme of arrangements to merge both companies, in a scrip deal that was meant to be worth over $210 million, with the combined entity to be dual listed on the local stock market and London's Alternative Investment Market.
Extract now intends to consider a range of options with a view to maximising the position for its shareholders.
Full announcement below:
TERMINATION OF PROPOSED RESTRUCTURE OF EXTRACT RESOURCES LIMITED AND KALAHARI MINERALS PLC
The Directors of Kalahari Minerals Plc (AIM:KAH) ("Kalahari") and Extract Resources Limited (ASX&TSX:EXT) ("Extract") announce that the Restructure Implementation Agreement ("RIA") dated 5 September 2008 has been terminated and the Restructure announced on 5 September 2008 will not proceed.
Kalahari has formally advised Extract that it does not have the support of a number of its largest shareholders and consequently Kalahari will not be able to satisfy its obligations under the RIA and the Restructure announced on 5 September 2008 will, therefore, not be able to be implemented. Extract now intends to consider a range of options with a view to maximising the position for its shareholders.
