| Thu 9 Dec 2010, 16:48 | | EXT - Extract Resources Limited - A$60.9M placement to Kalahari Minerals Plc |
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EXT - Extract Resources Limited - A$60.9M placement to Kalahari Minerals Plc
Extract Resources Limited
Registration No. ABN 61 057 337 952
Registered as an external company in Namibia
ISIN Code: AU000000EXT7
NSX Share Code: EXT
A$60.9M placement to Kalahari Minerals Plc
Extract Resources Ltd (ASX/TSX/NSX: EXT) announces that, it has agreed to issue
7,299,069 ordinary shares in the Company by way of placement to Kalahari Uranium
Limited, a 100% owned subsidiary of Kalahari Minerals plc ("Kalahari").
On completion, the shares will be issued at a price of A$8.35 per share,
representing a 5% discount to the 3-day VWAP of Extract shares from 3 December
2010 to 7 December 2010. The placement is expected to raise A$60.9m.
Following completion, Kalahari`s interest in the Company is expected to increase
from 100,043,018 shares representing 41.12% of the shares on issue to
107,342,087 shares representing 42.83% of the 250,601,367 shares on issue, being
an increase of 1.71% in Kalahari`s interest. The shares will be issued within
Extract`s 15% capacity under ASX Listing Rule 7.1 and the acquisition by
Kalahari is within its 3% entitlement under the creep provisions of the
Corporations Act.
The proceeds of the placement, together with existing cash balances of
approximately A$39.7m as of 30 November 2010, will provide funding to complete
the Company`s current drilling programmes, for further value engineering and
optimisation initiatives in support of the Definitive Feasibility Study on the
Husab Uranium Project, and will, in due course, permit initial engineering and
pre-development work to commence at the project.
The placement is conditional upon the Company and Kalahari entering into a
formal subscription agreement, and confirmation by ASX that it will not exercise
its discretion under ASX Listing Rule 10.11.2 or, if this confirmation is not
forthcoming, shareholder approval. Completion of the placement is expected to
occur on or before 7 January 2011 or if shareholder approval is required, within
two business days of shareholder approval.
On behalf of the Board of Directors,
Steve Galloway
Chariman
Windhoek, 09 December 2010
Registered Office
Swakop Uranium (Pty) Ltd
3 Schutzen Street
Windhoek
Namibia
Sponsor
IJG Securities (Pty) Ltd
Member of the NSX
100 Robert Mugabe Avenue
P O Box 186, Windhoek, Namibia
Registration No. 95/505
Date: 09/12/2010 16:48:02 Produced by the JSE SENS Department.
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