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Extract, Kalahari in Another Dispute Over Husab.

Shareholders in Kalahari Minerals are calling for the removal of Extract managing director Peter McIntyre from its board.

Extract however said this week that it is seeking legal advice on the requisition, which calls for a shareholders' meeting to consider removing Mr McIntyre.

To make matters worse, another shareholder - Polo Resources - is expected to request that its chairman Stephen Dattels be appointed to the board. This move is likely to get mining giant Rio Tinto - also a shareholder - to request for its own representation on the board.

Extract is concerned that the proposed changes would mean independent non-executive directors would become a minority.

The parties had agreed, back in March, to settle all their differences.

At that time, Extract Resources bowed to Kalahari Minerals' demands to oust John Main as part of a shake-up designed to ease its major shareholder's fears that Rio Tinto could be seizing control of the uranium hopeful.

Extract Resources principal asset is its 100% owned Husab Uranium Project in Namibia which contains two known uranium deposit areas: Rössing South; and Ida Dome. In January Extract announced an initial resource estimate, following JORC Code and Canadian NI43-101 guidelines, for Zone 1 of the Rossing South project in Namibia, of 108 million pounds U308 at a grade of 430 ppm.

Kalahari Minerals recently raised approximately £17.89 million before expenses to maintain or possibly increase its 38.68% stake in Extract Resources.

There are several other significant stakeholders in both Extract Resources and Kalahari Minerals.

Rio Tinto (LSE:RIO) holds a 15.8% stake in Kalahari Minerals and a 15.6% stake in Extract. Niger Uranium (AIM:URU) holds a 15.5% stake in Kalahari Minerals, while Emerging Metals (AIM:EML) has a 9.84% interest.

Stephen Dattles, co-chairman of Emerging Metals is also chairman of Polo Resources (AIM: PRL), which holds a 5.7% stake in Extract Resources.

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Publication:Namibia Economist (Windhoek, Namibia)
Date:May 29, 2009
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