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« Uranium One Incorporated Drops 40%! | Main | Cameco Corporation Options Update 15 May 09 »

Extract Resources Limited Fails to Open

EXT Logo 26 May 09.JPG

Extract Resources Limited (ASX & TSX: EXT) failed to open for trading today on the Australian Stock Exchange. Apparently it is in dispute with its major shareholder Kalahari Minerals. (AIM: KAH).

Digging a little deeper we have this article carried by

Extract Resources (ASX & TSX: EXT) requested a trading halt in its shares on the ASX today, citing a "dispute with its major shareholder", AIM listed Kalahari Minerals (AIM: KAH). Extract said it was seeking advice on the matter and expects to advise the market before Wednesday 27th May 2009.

Extract Resources principal asset is its 100% owned Husab Uranium Project in Namibia which contains two known uranium deposit areas: Rossing South; and Ida Dome. In January Extract announced an initial resource estimate, following JORC Code and Canadian NI43-101 guidelines, for Zone 1 of the Rossing South project in Namibia, of 108 million pounds U308 at a grade of 430 ppm.

Kalahari Minerals recently raised approximately £17.89 million before expenses to maintain or possibly increase its 38.68% stake in Extract Resources.

There are several other significant stakeholders in both Extract Resources and Kalahari Minerals. Rio Tinto (LSE:RIO) holds a 15.8% stake in Kalahari Minerals and a 15.6% stake in Extract. Niger Uranium (AIM:URU) holds a 15.5% stake in Kalahari Minerals, while Emerging Metals (AIM:EML) has a 9.84% interest. Stephen Dattles, Co-Chairman of Emerging Metals is also Chairman of Polo Resources (AIM: PRL), which holds a 5.7% stake in Extract Resources.

Kalahari Minerals trades on the AIM section of the London Stock Exchange under the symbol of KAH.

Hopefully our Aussie readers will be closer to the action than we are and will enlighten us further on this matter. Until then we can only watch for a news release to bring us up to speed. That said, this legal battle needs to be resolved quickly and amicably as soon as possible to limit the damage to investor confidence.

Have a good one.

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Reader Comments (5)

Gidday Bob, Nothing unusual on the ASX about a company requesting a "trading halt". Not sure if your term "fails to open" is the best. Also not sure that the answers to what is obviously a complex tangle will be found in Australia. I think it is in London boardrooms where the fate of Extract Resources will be thrashed out. The three big holders are all there, RIO, Kalahari and Polo.

May 26, 2009 | Unregistered CommenterWarwick Hughes

RNS Number : 7939S
Polo Resources Limited
26 May 2009

For immediate release 26 May 2009

Polo Resources Limited
('Polo Resources', 'Polo' or 'the Company')

Polo calls for EGM of Extract

Polo Resources Limited (AIM: PRL) announced today that it is in the process of requisitioning an EGM of Extract Resources Limited ('Extract'), to appoint Stephen Roland Dattels as a director of Extract.

Polo has a 9.08 % interest in Extract and Mr Dattels has a beneficial interest in 0.92 % of Extract.

Guy Elliott, a director of Polo, also has an interest of 0.01% in Extract.

Mr Dattels has significant experience in the Uranium sector. He is currently a Director of Berkeley Resources Limited which is a developer of Uranium resources in Spain. Previously, he was the founder of UraMin Inc, which developed the Trekkopje Deposit in Namibia to feasibility study as a heap leaching Uranium project. UraMin Inc was sold in July 2007 for $2.5 billion to Areva, the French Government owned fully integrated Uranium company, which has made a substantial capital commitment to Namibia, largely towards the development of the Trekkopje Deposit to its intended commercial production in 2010.

Mr Dattels said today that:

'Polo is committed to seeing the development of the Rossing South Deposit owned by Extract as a stand alone operation.

Work undertaken by Polo's technical advisor on a conceptual plan for the Rossing South Deposit, based on publicly available information, indicates that production is feasible as early as Q4 2011. This may be achievable as a 100% heap leaching operation, depending on the scheduling and results of feasibility work being undertaken by Extract.'

May 26, 2009 | Unregistered CommenterVizzini

Battle for Rossing South uranium control hotting up

Polo Resources - a 9.1% holder in uranium explorer Extract Resources - is requesting a seat on the latter's board for Stephen Dattels, stirring control speculation.
Author: Lawrence Williams
Posted: Tuesday , 26 May 2009


In the latest move to try and gain an advantage in how the very exciting Rossing South uranium deposit in Namibia will proceed, AIM listed Polo Resources, which holds 9.1% of Extract Resources - the controlling company for the Rossing South deposit - has asked for an Extraordinary General Meeting to elect its Executive Chairman, London-based Canadian lawyer, Stephen Dattels, to the Extract board of directors.

There are three major players in the battle for control of Extract. First and foremost, Kalahari Minerals owns 39.6% of Extract, but in turn Rio Tinto, which has the huge Rossing Uranium mine, one of the world's largest, located just to the north of Extract's land holdings, owns 15.8% percent of Kalahari Minerals and a further 15.3% of Extract directly. The second major player is, of course Polo with the aforementioned 9.1%, while Dattels himself owns 0.9%.

The recent Polo and Dattels purchases of Extract stock are of particular interest as Dattels has an impressive track record in Namibian uranium development. He was founder and executive deputy chairman of UraMin which was picked up by French nuclear giant Areva for a cool $2.5 billion primarily for its Trekkopje uranium project. Dattels is reputed to have made $100 million personally from the transaction.

Extract's Rossing South deposits are part of its huge Husab land position, which also has other significant uranium discoveries on it. In January this year, Extract annaounced an initial resource estimate, following JORC Code and Canadian NI 43-101 guidelines of 108 million pounds U3O8 at a grade of 430ppm. This estimate is only in Zone 1 of what Extract calls the Rossing South deposit. A second zone a short distance away is also estimated to contain over 100 million pounds U3O8 and the next resource announcement due later this year is expected to be considerably larger as drilling continues to define the resource.

Rossing South is thus turning out to be one of Namibia's biggest uranium deposits to date - and there are a number of other highly promising ones in the African nation as well see: Namibia: uranium's new haven. Hot sector, hot stories.

But of particular interest to investors is the way the battle for control will pan out. Dattels says, in a statement published today "Polo is committed to seeing the development of the Rossing South Deposit owned by Extract as a stand-alone operation. Work undertaken by Polo's technical advisor on a conceptual plan for the Rossing South Deposit, based on publicly available information, indicates that production is feasible as early as Q4 2011. This may be achievable as a 100% heap leaching operation, depending on the scheduling and results of feasibility work being undertaken by Extract."

Given the project's relative accessibility, it is possible that matters could move ahead this fast, but it is perhaps doubtful it will. Rio Tinto is also obviously keen to get its hands on the project and integrate operations with its existing Rossing operation, but it has other financing problems at present and may wish to delay any definitive moves on Rossing South until it is in a better financial position.

In this respect Dattels' current play is an opportune one - and may force Rio's hand - and leave Dattels himself with yet another big Namibian uranium payout.

May 26, 2009 | Unregistered CommenterVizzini


Point taken regarding our title.

Today appears to have gone OK with 1.2 million shares traded.



May 27, 2009 | Unregistered CommenterUranium Stocks

One way of playing Extract and Kalahari could be via Geiger Counter GCL on the LSE International - also might be worth looking at their warrants GCLS on the same exchange - though probably not for widows and orphams :)


May 28, 2009 | Unregistered CommenterBob

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