Extract Resources Limited: Going for $8.65 a Share
Monday, February 6, 2012 at 9:25PM
Uranium Stocks


Well done to all of you who had the foresight to invest in this company sometime ago, it now looks like the takeover is finally about happen.

Taurus Minerals Limited has received acceptances under its offer for Extract Resources Limited’s (ASX:EXT, TSX:EXT, NSX:EXT) major shareholder, Kalahari Minerals, of 89.5 per cent.

It must now proceed with its takeover offer of Extract Resources for $8.65 per share by the start of next month.

In a statement Extract says its independent directors are investigating whether there are any available alternatives to maximise value for shareholders.

Extract Resources reported a net loss of $55 million in the 2011 financial year.

One of the world’s foremost emerging uranium companies, Extract Resources Limited, is focused on developing the Husab Uranium Project in Namibia, the world’s fourth largest known primary uranium deposit.

Headquartered in Perth, Australia, Extract is an international business, with offices in London, Swakopmund and Windhoek, Namibia, and stock market listings in Australia (ASX), Toronto (TSX) and Namibia (NSX).

Extract’s operational focus is on the 100%-owned Husab Uranium Project in Namibia, which hosts the largest and highest grade, granite-hosted uranium deposit in the country. Since the initial discovery of uranium mineralisation at the northern end of Husab in February, 2008, Proven and Probable Reserves of 320 million pounds of U308 have been defined following JORC Code guidelines. This extensive reserve is expected to form the basis of a mining operation well in excess of 20 years.

The Company also has a global resource inventory of 513 million pounds of U308  Extract expects its ongoing and future drilling programmes to continue to increase resources and reserves at Husab.

Extract plans to develop the Husab Uranium Project to produce 15 million pounds of U308 a year, a rate of production that would place Husab among the worlds largest producing uranium mines, second only to the McArthur River mine in Canada, if in operation today. The development plan includes a low risk open pit mining operation with the ore processed through a conventional tank leach plant.

The transformation from explorer to developer, and ultimately producer, is already underway with the completion of the Definitive Feasibility Study for the Husab Uranium Project in the first quarter of 2011 which demonstrated the technical and economic viability of the project.

Additional value continues to be added to Husab through our mine optimisation and resource extension programme (MORE). The most recent examples of this are the updated resource statement in June 2011, and the reserve update in August 2011. To continue to support the development of Husab Extract has assembled an accomplished executive management team with decades of experience, including developing and managing major mines in Namibia.

So whats the next hot uranium stock? Please fire in your suggestions.

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