Proactive investorsLogo Proactive Investors UK Website

Search field

1 year chart

digital-look imported chart image

1 day chart

digital-look imported chart image
Epic & Msn data
Epic KAH
Time: 16:34:34
Mid Price: 131.00
Change Today: 4.00 Ascending
Change % Today: 3.15 Ascending
Fifty Two Week High: 136.50
Fifty Two Week Low: 25.75
Market Capital: 257.99
Period & price data
Period Price
Now: 131.00
3 Months ago:
6 Months ago:
1 Year ago:
Additional information
Additional Information
Market: AIM
Sector: General Mining - Uranium
Epic: KAH
News: Latest news
Web Site: Kalahari Minerals
Other Articles: 02-07-200918-06-200915-06-2009

Kalahari Minerals

Kalahari is a dynamic emerging exploration company with a portfolio of copper, base metal and uranium interests in Namibia.  Listed on AIM it was one of only five mining stocks to finish 2008 demonstrating a gain in its share price and is actively sought out by major mining players including Rio Tinto.  Its key investment is its current 40% holding in ASX and TSX listed Extract Resources.

CLICK HERE FOR FULL ANLAYSIS OF KALAHARI MINERALS
Wednesday, November 19, 2008

Kalahari Minerals calls off merger with Extract Resources on Rio Tinto concerns

by Ian Mclelland company news image

Kalahari Minerals stunned investors this morning when it announced that a proposed merger with Extract Resources was being pulled.  Kalahari Minerals already holds a 39.1% interest in Extract Resources, and it was widely accepted that by merging the two companies, the combined group would have been in a better position to continue advancing its portfolio of mineral assets in Namibia, and in particular, its uranium prospects.  


Uranium exploration in Namibia’s world class uranium district surged in recent years on the back of strong gains in the spot price of uranium. However, even with a heavy retreat in uranium prices, the Namibian uranium sector has continued to drive ahead in 2008.


Just last week it was announced that Forsys Metals, which controls the Valencia Uranium Project in Namibia, had agreed to be acquired for C$579 million by George Forrest International, a privately owned industrial group.  Rio Tinto (LSE: RIO) and Paladin Energy (TSX: PDN) already operate uranium mines in Namibia, while Extract Resources (ASX: EXT), Xemplar Energy (TSX-V: XE) and Bannerman Resources (TSX: BAN) are the notable exploration juniors active in the region with interesting prospects.


Kalahari Minerals said that it decided not to go ahead with the transaction after it became apparent that its stakeholders had concerns about the intentions of company’s newest shareholder – Rio Tinto.  Rio Tinto acquired stakes in both Kalahari Minerals (14.9%) and Extract Resources (13.1%) from RAB Capital – the energy and natural resources hedge fund that has been forced to liquidate a number of positions in recent months. Post merger Rio Tinto would have held 19.8% of the combined company.


“After the Restructure, Rio would have held approximately 19.8% of the enlarged company (on a diluted basis) and would have been entitled to further increase that stake without being subject to the 20% limit under the Australian takeovers provisions,” Kalahari stated.


“Following Rio's emergence on the register of Kalahari and Extract, concerns were raised by a number of Kalahari's larger shareholders about the potential for Rio to acquire effective control of the merged company without paying a premium for doing so.


“In addition, a number of those shareholders were concerned that Rio's material holding in the combined group would give it an unhealthy level of control and/or influence in relation to any future negotiations involving a potential transaction between Rio (or its related company, Rossing Uranium) and the merged company either at the asset or the corporate level.”


Kalahari went on to say that it had attempted to seek “guidance and assurances” from Rio Tinto regarding its intentions, but that it had failed to secure a standstill commitment with Rio that would satisfy its shareholders.


“Kalahari retains a 39.11% interest in Extract and now intends to consider a range of other options with a view to maximising the value of that interest.”

NewsNow icon AddThis Feed Button
Register here to be notified of future Kalahari Minerals articles.

Other Kalahari Minerals articles


Other Kalahari Minerals news

More news ►

Investors interested in Kalahari Minerals recently viewed


No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.