PERTH (miningweekly.com) − Uranium developer Extract Resources would continue its partnership discussions for the Husab uranium mine, in Namibia, despite a looming takeover by China Guangdong Nuclear Power Corp (CGNPC), it said on Friday.

Extract’s majority owner, Kalahari Minerals, has agreed to a $993-million takeover by CGNPC. If CGNPC were successful in its bid, it would have to make an offer for Australia-based Extract Resources, in which Kalahari owns a 43% stake, unless Australian regulators were to make an exception to the regulations.

Extract said it had received a strong level of interest in the Husab project from potential strategic investors, adding that the discussions were continuing and included a range of possible investment structures.

“The nature and level of interest received has confirmed Husab’s status as a world-class and highly strategic asset,” the miner said.

Discussions regarding debt financing, as well as potential offtake arrangements to underpin the project’s development would continue.

“Plans for delivery of access, power and water infrastructure are also well advanced, while the mine optimisation and resource extension programme continues to deliver results that increase the mine life through definition of further reserves, and that optimise the design of the processing plant and mining operations.”

The Namibian Ministry of Mines and Energy recently issued Extract a mining licence for the development of the Husab uranium project. The licence was the final stage to achieve all the material permits that the company required to develop the project.

The Husab uranium mine, which was currently classified as the world’s fourth-largest uranium-only project, would come on line during the fourth quarter of 2014, producing some 15-million pounds of uranium oxide a year, over a 20-year life-of-mine.

Capital costs for the project were estimated at around $1.5-billion, including initial mine fleet, processing plant and supporting infrastructure.

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