PERTH (miningweekly.com) – Uranium developer Extract Resources confirmed on Tuesday that it had been consulted by and made submissions to the Australian Securities and Investment Commission (ASIC) regarding the terms and conditions for a possible “downstream offer” by China Guandong Nuclear Power Corporation (CGNPC).

The ASX- and TSX-listed Extract said that the company had sought to ensure that the interests of all Extract shareholders would be protected should an offer arise, noting that its 42.74% shareholder, Kalahari Minerals, had confirmed a resumption of discussions with CGNPC on a possible offer for Kalahari.

Extract went into a trading halt on Monday on media speculation that CGNPC would make a $2.2-billion takeover bid for the uranium developer.

Extract also on Tuesday confirmed that its 42.74% shareholder Kalahari Minerals have restarted takeover discussions with CGNPC.

“The independent directors of Extract will be monitoring the situation closely to assess any implications for Extract and will keep shareholders informed of any material developments on this matter,” the miner said.

Extract is developing the $1.66-billion Husab uranium project, in Namibia, which was expected to start production in 2014, and would produce some 15-million pounds of uranium oxide a year, over a 20-year life-of-mine.
 

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