Kalahari and Extract plan merger to boost Namibia operations

Kalahari Minerals has announced plans to merge with compatriot Extract Resources in a move to bring together the two companies’ Namibia-based uranium and base metals operations.

Kalahari is listed on AIM and Extract has listings in Toronto and Australia. The combined entity, which is set to come together in a recommended scheme of arrangement, would have a dual listing in London and Australia.

Kalahari currently holds 39.11% of Extract’s ordinary shares with this deal seeing the company offer 1.6 ordinary Kalahari shares for every ordinary share in Extract, valuing each Extract Share at A$0.99. That represents a premium of 4.2% over the volume weighted average price of Extract’s shares during the last month.

Mark Hohnen, executive chairman of Kalahari, said: We believe that simplifying our corporate structure and combining the resources of both companies will deliver short, medium and longer term benefits to shareholders of both companies.

“Critically, shareholders of both companies will retain their exposure to the Husab Uranium Project, particularly Rossing South, and Extract’s shareholders will gain access to our portfolio of copper and base metal prospects in Namibia.”