Kalahari Minerals Launches A$91 Million Equity Raising
August 25 2009 - 1:16PM
Dow Jones News
Kalahari Minerals Plc (KAH.LN), a mining exploration and
evaluation group with interests in Namibia, announced Tuesday that
Extract Resources Ltd, in which Kalahari's subsidiary, Kalahari
Uranium Limited, holds a 39.98% interest, has launched a proposed
A$91 million equity raising, by way of a non-renounceable pro-rata
offer to eligible shareholders and a private placement to
institutional investors.
MAIN FACTS:
-The proceeds will be used in particular to accelerate the
exploration activities of the world class Rossing South uranium
project in Namibia, which has a current resource of 267 M lbs of
U3O8 at 487 ppm across two zones which are open at depth and along
strike, where preliminary cost estimates have indicated it could
already support one of the world's largest uranium mines.
-Accordingly, in order to maintain its exposure in Extract, and
to fully take up its rights with regards to Extract's fund raising,
Kalahari is pleased to announce an associated funding, the details
of which are being considered.
-This may include a potential convertible bond/debt component in
addition to equity, details of which will be released in due
course.
-As well as participating in the pro-rata offer for its relevant
portion of new shares in Extract, being 2,616,927 new shares at an
issue price of A$7.75 per new share for a total consideration of
A$20,281,184.25, Kalahari has, along with Extract's two other
largest shareholders, Rio Tinto International Holdings Australia
Pty Limited (RIO.LN)(15%) and Polo Resources Limited (PRL.LN)(10%),
irrevocably committed and agreed to subscribe at the issue price,
for any additional New Shares not subscribed for by the other
holders of shares in Extract, in the same proportion to their
current holding in Extract.
-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com