[miningmx.com] — ASX-listed Extract Resources, which owns the Husab
uranium deposit in Namibia, on Tuesday received a formal bidder’s statement from
China’s CGNPC-URC about the Chinese state-owned company’s intent to make a cash
offer for Extract.
This came after Kalahari Minerals, which owns 42.74% of Extract, said 93.8% of its
shareholders have accepted an earlier offer from CGNPC by 13:00 on Monday. The
remaining 6.2% of shareholders have been given until February 28 to make up their
minds. The offer from CGNPC valued Kalahari at $989m.
“Extract Resources has today received a bidder’s statement from Taurus Mineral [a
subsidiary of CGNPC and the China-Africa Development Fund] containing the terms of
the proposed unconditional cash offer for all of the shares in Extract at a price of
A$8.65 per share,’ read an Extract statement. Such a deal would value Extract at
$2.2bn.
Taurus’s offer has to be despatched to Extract shareholders by no later than March
1, at which point it will be open for acceptance and has to remain open for at least
30 days.
“In the meantime, shareholders are advised to take no action and await further
guidance from Extract’s independent directors.’
A proposed takeover of Extract has already been cleared by the Namibian
Competition Commission, after CGNPC held talks with Epangelo, Namibia’s state miner,
in November on the Namibian government acquiring a 10% stake in Husab.
Husab is the world’s fourth-largest known uranium deposit. Extract estimated it
would cost $1.65bn to develop the mine, which would produce 15 million pounds
uranium per year for an initial 16 years. Rio Tinto, which owns the neighbouring
Rossing mine, still has a direct stake of 14% in Extract, even though it had agreed to
sell its 11% stake in Kalahari to Taurus.
