PERTH (miningweekly.com) – Uranium developer Extract Resources on Monday told shareholders that it was expecting a takeover offer from Taurus Minerals by no later than March 1.

Taurus Minerals, a subsidiary of China Guandong Nuclear Power Corporation (CGNPC), on Friday declared its takeover of Kalahari Minerals unconditional, after securing an 89.5% shareholding in the company.

CGNPC has previously said that a 50% shareholding in Kalahari, by February 2, would trigger a A$8.65-a-share takeover offer for ASX- and TSX-listed Extract.

The bid would value Extract, which was developing the Husab uranium project in Namibia, at around $2.2-billion. The deal has been approved by the Namibian government, despite Extract directors holding off on making a firm recommendation until a firm offer had been made.

Under the terms of the Australian Securities and Investment Commission relief, Taurus would now be required to declare the Extract offer free from any outstanding conditions by no later than February 16, in order to satisfy the contracts under the offer for Kalahari.

Extract told shareholders that the company’s directors would only make a recommendation on a takeover offer from Taurus once they have had an opportunity to review and evaluate the bidder’s statement and there was an offer to consider.

In the meantime, Extract shareholders were advised to hold off on taking any action.
 

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