18/02/2009 - 13:30

Extract soars, Rio ups Kalahari stake

18/02/2009 - 13:30

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Extract Resources has revealed that Rio Tinto has boosted its interest in dissident shareholder Kalahari Minerals, as its shares soared nearly 40 per cent over the past five trading days.

Extract soars, Rio ups Kalahari stake

Extract Resources has revealed that Rio Tinto has boosted its interest in dissident shareholder Kalahari Minerals, as its shares soared nearly 40 per cent over the past five trading days.

The Australian Securities Exchange issued a please explain to Extract after its shares jumped from $1.62 on February 12 to a high of $2.25 today.

Extract said it was not aware of any information that would cause its share price to skyrocket, however did mention that Rio had bought 3.45 million Kalahari shares on London's stock market last week.

The purchase has now lifted Rio's interest in Kalahari to 15.8 per cent.

The news comes two days before a directions hearing between Extract and Kalahari in the Supreme Court of Western Australia.

Kalahari is seeking the removal of newly appointed director John Main, who has previously employed with Rio.

Earlier this month, Kalahari, which holds a 39.5 per cent interest in Extract, was successful in its bid to remove Extract chairman Bob Buchan.

Rio also holds a 12 per cent stake in Extract.

The difference of opinion between Extract and Kalahari emerged after the termination of a friendly merger agreement last year.

 

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