Kalahari agrees Extract board

09/03/2009 Robert Tyerman

Uranium and copper play Kalahari Minerals has ended its dispute over board composition at 39.8 per cent-owned Extract Resources.

Down Under-quoted Extract is the company through which London-headquartered Kalahari has its exposure to the key Rossing South uranium deposit, holding an estimated 108 million lbs of U3O8 within Namibia’s Husab uranium prospect. Mining giant Rio Tinto, which operates the long-standing Rossing uranium mine nearby, holds 14.6 per cent of Extract and 15.8 per cent of Kalahari.

These various parties had been in dispute over the composition of the Extract board, but say they have now reached agreement. Steve Galloway, a former Kalahari director, will now become non-executive chairman of Extract, while John Main, originally recommended by Rio and whom Kalahari had wished to remove, becomes a non-executive director. Two non-executives, Steve Sikirich and Peter Meagher, have resigned, while Peter McIntyre stays as managing director. David de Jongh Weill becomes a non-executive director of Kalahari.

Mark Hohnen, chairman of Kalahari, who suggests Extract will soon be able to increase its total uranium resource estimate to 240 to 250 million lbs of U3O8, says this resolution will enable the company to pursue the development of its projects unimpeded. It still leaves Rio with big stakes in both Kalahari and Extract and no formal obligation to bid, while two other AIM-quoted groups, Niger Uranium and mining entrepreneur Steve Dattels’ Emerging Metals, hold 15.4 per cent and 8.8 per cent respectively.

Highlighted by Growth Company Investor at 15p three years ago and 26.25p in early 2008, Kalahari shares hit 81p in February and now trade at 75p, valuing the company at £134 million. Hold on.

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