Extract Resources Limited in Talks with Rio Tinto
Sunday, February 20, 2011 at 10:07PM
Uranium Stocks in Uranium Mining Stocks
EXT Chart 21 Feb 2011.JPG

Some news hot off the press out of Australia is that Extract Resources Limited (EXT) have announced that they are currently holding discussions with Rio Tinto around a potential combination of the Husab Uranium Project with the neighbouring Rössing Uranium Mine, with a view to capturing the significant potential synergies that could be generated from a joint development of the two projects.

Extract is also holding discussions with Kalahari Minerals Plc to explore various options that might simplify the Extract/Kalahari shareholding structure.

These discussions remain confidential and incomplete and there is no certainty that the parties will reach any agreement. Extract will continue to keep shareholders informed of any material developments.

This follows on from an announcement made by Kalahari Minerals recently as follows:
Kalahari Minerals (LON:KAH) will take a tighter grip of Uranium exploration group Extract Resources (ASX:EXT, TSX:EXT, NSX:EXT) after participating in a private placing.

It is buying just under 7.3 million shares for a total A$60.9 million, or A$8.35 a share. 

The price represents a 5 percent discount to the volume weighted average price of the stock for the period from December 3 to December 7.

Kalahari’s stake in Extract, owned through its subsidiary Kalahari Uranium, rises to 42.83 percent from 41.12 percent.

Kalahari chairman Mark Hohnen said: "The placing, initiated by us to increase our stake in Extract, reiterates Kalahari's unwavering commitment to the continued development of Extract, both operationally and corporately.

Interesting times for Extract Resources Limited, Guess its a case of watch this space for further developments.

Extract Resources Limited trades on the ASX and TSX under the symbol of EXT giving it exposure to both the southern and northern hemispheres.

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sk chart 19 Feb 2011.JPG

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