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（January 23,2012） A CHINESE nuclear company has moved a step closer to bidding for Australian uranium explorer Extract Resources but the target says it is still seeking alternative suitors. State-owned China Guangdong Nuclear Power Group (CGNPC) is pursuing Extract because of its rights to the Husab uranium deposits in Namibia, reputedly the fourth-largest in the world. Taurus Minerals - which is owned by CGNPC - announced on the London Stock Exchange in recent days it had acceptances and pledges for 30.8 per cent of Extract's major shareholder, Kalahari Minerals Plc. Kalahari Minerals has a 42.74 per cent holding in Extract Resources, Taurus said in its statement, saying that CGNPC had a relevant interest in Kalahari. This follows Taurus' $US979 million ($A937.87 million) takeover offer for Kalahari. China wants new sources of uranium to help shore up resource security for the country. The Australian Securities and Investments Commission (ASIC) last month said that under Australian law, CGNPC had to launch a takeover for Extract if it successfully acquired Kalahari. A potential $2.2 billion offer would be at around $8.65 per share, according to Extract. ASIC said that CGNPC would have to bid for Extract in less than four weeks if it acquired more than 50 per cent of Kalahari. Extract said in a statement today that its board was still actively investigating all available alternatives that could maximise value for Extract shareholders. "Extracts independent directors intend to make a recommendation in relation to the Taurus offer for Extract once such an offer is made," it said. Rio Tinto is a possible rival as it operates the neighbouring Rossing uranium mine, owns 14 per cent of Extract, making it the second-biggest shareholder. Separately, it also owns 11.5 per cent of Kalahari. Rio has spoken to Extract about combining Rossing with Husab. Husab has 280 million tonnes of uranium reserves. Namibia is the world's fourth-largest uranium producer. Shares in Extract were up once cent on Monday at $8.59 at 1441 AEDT compared with a flat performance by energy stocks. |
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