Extract Resources Limited and Kalahari Minerals plc Announces Restructure Agreement



    SOUTH PERTH, WESTERN AUSTRALIA, Sept. 5 /CNW/ - Extract Resources ("the
Company"), (TSX:EXT;ASX:EXT), a Uranium exploration company with projects in
Namibia, Africa, today announced details of the terms of a proposed
restructuring of the ownership of Extract Resources Limited and AIM listed
Kalahari Minerals plc which is proposed as a recommended scheme of arrangement
under the Australian Corporations Act.

    
    Overview

    -  Proposed restructuring of the ownership of Kalahari Minerals Plc and
       Extract Resources Limited by a recommended scheme of arrangement under
       the Australian Corporations Act
    -  Kalahari currently holds 39.11% of Extract's ordinary shares
    -  Merged group to be dual listed on AIM and the ASX
    -  Board and management consolidation
    -  Cash post transaction completion expected to be approximately (pnds
       stlg)15 million
    -  Resulting entity - a 100% owned, Namibia-focused uranium and base
       metals company
    

    Introduction

    The directors of Kalahari Minerals Plc (AIM: KAH) ("Kalahari") and
Extract Resources Limited (ASX & TSX: EXT) ("Extract") are pleased to announce
a proposed restructure by means of a merger of the two companies
("Restructure"), which will be effected by a recommended scheme of arrangement
pursuant to the Australian Corporations Act (the "Scheme"). The Restructure
will consolidate ownership of the assets of each company into a single
corporate vehicle (the "Enlarged Company"). It is intended that the Enlarged
Company will (subject to required approvals) be dual listed on AIM and the
Australian Securities Exchange ("ASX").
    Pursuant to the terms of a Restructure Implementation Agreement entered
into today ("RIA"), it has been agreed that Kalahari will offer 1.6 ordinary
shares in Kalahari ("Kalahari Shares") for every one ordinary share in Extract
("Extract Shares"), valuing each Extract Share at A$0.99, a premium of
approximately 4.2% to the volume weighted average price of Extract Shares on
ASX over the one month prior period to 3 September 2008, and a 12.2% premium
to the average 2008 trading ratio between Kalahari and Extract of 1.42.
    The full text of the proposal will be released through filing on SEDAR.

    About Extract

    Extract Resources is an Australian-based uranium exploration company
whose primary focus is in the African nation of Namibia. The Company's
principal asset is its 100%-owned Husab Uranium Project which contains three
known uranium targets: Ida Dome; Hildenhof; and Rossing South. Rossing South
represents the Company's first new discovery in this area with enormous
potential. Extract is listed on the ASX and the TSX under the ticker symbol
"EXT". For more information on Extract visit www.extractresources.com

    The information in this report that relates to Exploration Results,
Mineral Resources or Ore Reserves is based on information compiled by Mr
Martin Spivey, who is a Member of The Australasian Institute of Mining and
Metallurgy and Mr Andrew Penkethman who is a Member of the Australian
Institute of Geoscientists. Mr Spivey and Mr Penkethman are both full time
employees of the Company. Mr Spivey and Mr Penkethman have sufficient
experience which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which they are undertaking to
qualify as a Competent Person as defined in the 2004 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves'. Mr Spivey and Mr Penkethman consent to the inclusion in this
report of the matters based on their information in the form and context in
which it appears.
    Reference to down hole spectrometer results in this announcement refers
to data collected by consulting geophysical contractor Terratec Geophysical
Services undertaking down hole logging with a Gamma Ray Spectrometer (GRS42).
This unit was calibrated at the Pelindaba facility in South Africa before
arriving on site. The uranium values are recorded as parts per million (ppm)
eU3O8 which is equivalent to ppm U3O8. Whilst results from this unit provide
an indication of uranium mineralisation present they may also be affected by
uranium mobility and disequilibrium. These factors should be considered when
interpreting eU information while waiting for confirmation chemical assay
results.
    Reference to hand held spectrometer results refers to use of a Company
owned Exploranium, GR-135 Plus, hand held spectrometer. The uranium values are
recorded by placing the unit on the bulk RC sample bags and expressed as parts
per million (ppm) eU which is equivalent to ppm U. Results from these units
provide an indication of uranium mineralisation they may also be affected by
uranium mobility and disequilibrium. These factors should be considered when
interpreting eU information whilst waiting for confirmation chemical assay
results.




For further information:

For further information: Peter McIntyre, Managing Director; Richard
Henning, Investor Relations, rhenning@extractresources.com

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EXTRACT RESOURCES

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