Extract to raise $60.9m in placement

South Perth-based Extract Resources has announced plans for a $60.9 million placement to substantial shareholder Kalahari Minerals.

Extract will issue almost 7.3 million ordinary shares at a price of $8.35 per share.

This is a 5 per cent discount to the 3-day VWAP of Extract shares from December 3 to December 7.

Kalahari's interest in Extract will increase to 1.71 per cent from 41.12 per cent of shares on issue to 42.83 per cent.

Extract said the proceeds of the placement, together with existing cash balances of approximately $39.7 million, would be used to complete drilling at the company's Husab uranium project in Nambia.

Extract hopes the raising will also be used to fund engineering and pre-development work at the project.

"The shares will be issued within Extract's 15 per cent capacity under ASX Listing Rule 7.1 and the acquisition by Kalahari is within its 3 per cent entitlement under the creep provisions of the Corporations Act," Extract said in a statement to the Australian Securities Exchange.