PERTH (miningweekly.com) - The China Guandong Nuclear Power Corporation (CGNPC) on Tuesday launched a A$2.2-billion takeover offer for ASX- and TSX-listed uranium developer Extract Resources.
CGNPC, through its subsidiary Taurus Minerals, has made a $8.65-a-share cash offer for all the shares in Extract it does not already own. The subsidiary currently has a 42.74% shareholding in Extract obtained as a result of its takeover of Aim-listed Kalahari Minerals.
Taurus told Extract shareholders that the offer delivered certain value and eliminated the exposure to risks associated with the development of the Husab uranium project, in Namibia.
The miner also called into question the liquidity of Extract’s shares post the Kalahari takeover, adding that the remaining Extract shareholders might be called upon to participate in capital raisings to satisfy funding requirements for the Husab project.
Taurus was expected to lodge a bidder’s statement no later than March 1.