julian1976
- 30 Mar 2006 08:45

As copper becomes ever hotter property and the tantalising price of $3/lb heaves into view, at least for the optimistic among us, companies with their focus on the metal naturally become more interesting. A recent newcomer to the London market, Kalahari Minerals [AIM:KAH] can offer investors no less than three copper projects, with a uranium joint venture thrown in to add piquancy to the proposition.
Altogether, Kalahari can already boast an estimated 250,000 tonnes of copper in the ground across its Namibian ground, which makes it clear that the company has moved beyond exploration and into the pre-feasibility phase with its two key projects. The area in which the company is operating was explored preliminarily by other players back in the 1970s, and a sizable portion of the presently known resources originate from this spell, but failure by those then exploring to come across any very large targets plus a deteriorating political situation in Namibia brought proceedings to a halt.
Now that the copper market looks very different and the politics of Namibia have improved, Kalaharis ground is a lot more desirable. Indeed, the companys Chairman Mark Hohnen admits that it has been lucky to have been able to stake the areas it has, which essentially amount to a large slice of the Namibian section of the Kalahari copper belt, which has some geological similarities with the much storied Zambian copper belt.
Kalaharis first order of priority is the Dordabis project, within which it has homed in on a deposit known as Koperberg. Drilling here has identified oxide and sulphide zones of mineralisation and recorded some good intersections, the highlight of which has been 5 metres graded at 3.43% copper. A small scale pilot processing plant is already recovering copper cathode on site.
The Koperberg resource is still open, and an alluring possibility raised by Hohnen is that it could conform to the Olympic Dam geological model. That is, a massive body of IOCG (iron oxide copper gold) mineralisation with significant smatterings of uranium. It is too early to tell whether this is the case or not, but such a scenario is certainly something pleasant to dream of for Kalahari shareholders, and the company has allocated funds specifically towards testing this hypothesis.
Kalaharis second key project goes by the name of Witvlei, and hosts five known copper deposits along with a number of prospects. The next step for the company will be to try and expand the existing deposits and define resources at the prospects in order to come up with a total resource of a potentially economic size.
If this resource development programme comes up with the goods, Hohnen suggests that an attractive option for Kalahari at Witvlei may be the tried and tested development model of establishing initial cash flow from oxide material before moving on to trickier-to-process sulphides. The same development path could also be worth considering at Koperberg if the Olympic Dam model is not found to hold true there.
Kalaharis only grassroots stage project is Ubib, which has been is known to host copper gold mineralisation with a hint of uranium but needs appraising more thoroughly before much more than this can be said. The project is located some 15 kilometres from Anglo Gold Ashantis Navachab gold mine, which obviously auspicates well. Current work is centred on stream sampling to help identify prospective target zones for the application of more advanced exploration techniques.
The Husab uranium project, which is a joint venture with Extract Resources [ASX:EXT] structured to give Extract 51% and Kalahari the remainder, has surprised both companies. Hohnen says that little was thought of Husab until last year, when some great radiometric anomalies were turned up. The presence of uranium along with other metals has now been confirmed, and diamond drilling to test the deposit at depth begins in the next couple of weeks.
Husab is located right between the Rossing uranium mine, owned by Rio Tinto [LSE:RIO; NYSE:RTP], and the Langer Heinrich deposit, which is being developed by the uranium darling of the Australian market, Paladin Resources [ASX:PDN]. Extract has already gained significant recognition from its constituency of investors for Husab, and if drilling confirms the joint venture partners optimism, then the project could well help win Kalahari some fans in the London market, where uranium plays are not as numerous as they could be, and hence much in demand.
Investment Outlook
Kalahari has raised 6 million by way of its AIM listing, and intends to devote the largest portion of this sum to work at Dordabis. Therefore, this is the project that investors should be keeping their weather eye on. Significant progress down the road to feasibility is sure to add value to the company, other things, such as the copper market, being equal.
But in addition to Dordabis, there is scope for either or both of Witvlei and Ubib to shape up and grab investors attention. Husab already stands out, and with a high level of market interest in new uranium projects still apparent, it is a nice asset for Kalahari to have.
niceonecyril
- 05 Sep 2008 17:40
- 21 of 427
Report from proactive on the deal.and Extract Resources agree to merge
by Ian Mclelland
Kalahari Minerals (AIM: KAH) and Extract Resources (ASX, TSX: EXT) announced this morning that the two companies had agreed to merge.
Kalahari Minerals already hold a 39.11% interest in Extract Resources, and both companies are focused on mineral exploration in Namibia. Both companies also share a number of directors, and considering the current tight environment for fundraising, both companies also share a commonality of having healthy cash balances considering neither is generating any revenues yet.
The announcement this morning stated that Kalahari would issue 1.6 shares for every Extract Resources share, and that the combined company would be listed on the ASX and AIM, implying that Extract would drop its listing on the TSX. The combined company will also start life with approximately 15 million in the kitty and is likely to have a market capitalisation north of 100 million.
So should investors be pleased about this update? In a nutshell, yes.
Both companies serve to benefit from this transaction, assuming it goes through unhindered. The two companies overlap geographically, and could save considerable amounts on the corporate and administrative front, not to mention pooling their combined expertise, manpower and cash resources into one company. There are many other benefits too.
While Extract Resources has witnessed nothing short of excellent drill results from the Rossing South Uranium Project in recent months, its sole focus on uranium has influenced the share price, as the price of uranium has pulled back considerably from its peak in 2007. Extract has defined a JORC compliant resource of 25.1 million pounds of U308 at Ida Dome, but recently stated that its preliminary exploration target at Rossing South is an impress 126 to 198 million pounds of U308, so the potential is enormous.
Meanwhile, Kalahari, which holds a number of quality assets, particularly copper interests, has arguably been suffering from an identity crisis, as its large investment in Extract Resources has dedicated its own share price movements. Kalaharis primary goal is to define 250,000 tonnes of copper metal at its Dordabis and Witvlei Projects.
Bring the two companies together, and you diversify away from being essentially a one commodity play, to a multi-commodity play, whose key project has the potential to be a world class uranium project. But while you expand your exposure to uranium, copper, lead, zinc and gold, the group as a whole retains a relatively tight geographical footprint in Namibia.
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 said Mark Hohnen, Executive Chairman of Kalahari.
Dropping the TSX listing probably makes sense too, as the management of the two companies are essentially Australian, but retaining an AIM listing can come in very handy indeed when serious amount of project development capital is required. Based on todays new release, the combined entity believes that Rossing South will be rapidly moved towards a Full Bankable Feasibility study, which precludes a mine development decision.
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. As one of the largest uranium explorers by market capitalisation on AIM post the Restructure, we can look forward to developing all our projects with support and confidence the company added.
Under AIM Rules, the transaction is considered a reverse take-over for Kalahari, which means the companys AIM listing will be cancelled, and then the new entity will have to reapply to admission to AIM. Both Kalahari and Extract will also hold AGM or EGMs to seek shareholder approval for the deal.
Assuming it all goes smoothly; the combined company should be a stronger more determined company with the assets to deliver substantial value.
niceonecyril
- 11 Sep 2008 09:20
- 22 of 427
Kalahari Minerals plc, the AIM listed mining exploration group with a portfolio of copper, base metal and uranium interests in Namibia, was notified on 10 September 2008 that Rio Tinto International Holdings Australia Pty Ltd purchased 24,817,310 ordinary shares in the Company on 8 September 2008, representing approximately 14.9% of the Company's total voting rights.
In addition, Extract Resources Limited ('Extract') also announced today on the ASX that Rio Tinto International Holdings Australia Pty Ltd is now a substantial holder in Extract, with 23,162,192 ordinary shares, representing approximately 10.9% of Extract's total voting rights.
Kalahari Chairman Mark Hohnen said, 'Rio Tinto's major investment in Kalahari is great news for the Company and we welcome them to our shareholder base. The involvement of Rio Tinto, one of the world's leading mining and exploration companies, confirms the world class nature of our uranium investment in Namibia, particularly within the alaskite belt that hosts the world class Rossing Mine. Kalahari believes that Rio Tinto's investment will provide further confidence for shareholders in our decision to acquire the remaining 60.89% of Extract Resources.'
* * ENDS * *
cyril
niceonecyril
- 11 Sep 2008 13:02
- 23 of 427
From an aussie board (HC)
Mid-Week Alert - Extract Resources (EXT)
As a follow-up to our comments on Extract Resources in the Portfolio News section of this weeks Fat Aus Mining 141, we can today reveal the mystery buyer that snapped up almost 11% of the companys shares in an on-market raid earlier this week. The buyer is Rio Tinto.
Rio lodged a substantial shareholder notice this morning with the ASX, indicating that it now owns more than 23 million shares in Extract, representing 10.9% of its issued capital, having purchased these shares on Tuesday 9 September at prices ranging from as low as $0.975 to as high as $1.20. The biggest purchase was for a block of almost 22.8 million shares at a price of $1.20, which we presume would have been bought from distressed UK resource fund manager, RAB Capital.
Extracts share price leapt to a high of $1.345 on Thursday on the news of the Rio buy-in.
So what does the Rio purchase mean for Extract? Well it confirms Rios expressed commitment last year to develop its uranium business, with a specific focus on Namibia. And this has to be hugely positive for Extract.
As Members may recall in our initial Buy recommendation on Extract Resources in Fat Mining 97 back in October last year, Rio Tinto had just recently committed to a major expansion of its Rossing uranium mine (the worlds biggest open-pit uranium deposit), after earlier contemplating its closure. Rio had almost simultaneously put its large Kintyre uranium deposit in Western Australia up for sale.
We commented at the time that Rios actions spoke volumes about where it saw its uranium business heading over the coming decades. This is why we favoured Namibia as a uranium destination so much and hence our positive view on Extract Resources.
We should point out that it is extremely unusual for a company of Rios enormous size to take such a strategic stake in a company like Extract at such a relatively early stage in its development. What this therefore tells us is that Rio can obviously see the potential for a world-class development at Extracts Rossing South project area. Certainly, the huge widths and high uranium grades that we have been reporting to Members from the companys exploration drilling programme supports this.
For Extract to develop a stand-alone uranium mine on its ground is going to cost the company potentially in the vicinity of several hundred million dollars. In the current environment, fund raising for such a large undertaking is getting harder. Banks are under pressure and tightening their lending. The cost of project finance is going up.
Why is why the friendly tie-up with 39% shareholder, Kalahari Minerals, was proposed. Its all about battening down the hatches and belt-tightening in the current resource environment. Although its yet to be confirmed, Rio is also seemingly the party behind a London raid on the register of Kalahari Minerals early this week, which saw a 15% stake acquired by a mystery buyer.
Rio is motivated by the fact that it has an existing operation in Namibia and all of the skills necessary to expand and develop its regional uranium business. It also recognises that it probably has to be a little more nimble than usual in this instance, given the presence of other likely predators in the form of Niger Uranium, itself a relatively new 17.5% shareholder in Kalahari, Areva Energy and Paladin Energy, all of which are uranium companies that have grown through acquisition.
We do not know Rios immediate intentions, but it is clear in our view that the company will not want to remain a passive investor in Extract Resources with an 11% stake. Rio sees the obvious attraction of the companys Rossing South ground, which augurs well for Extracts future. It has the balance sheet strength to make the project happen, either in partnership with Extract or in its own right.
We will follow and report developments as they happen and we hope to talk to Extract management soon, but this episode once again highlights the clear value out there in the resource sector that is being ignored by the market. The share prices of many resource companies have fallen to ridiculous levels and the winners will be the resource predators that will seize upon this unprecedented buying opportunity.
Extract Resources will remain firmly held within the Fat Prophets Mining & Resources Portfolio. We will keep Members posted with respect to developments as they occur.
cyril
ateeq180
- 11 Sep 2008 13:15
- 24 of 427
is this a buying oppertunity niceonecyril,all buys so far.
niceonecyril
- 11 Sep 2008 13:25
- 25 of 427
ateeq180, i've tucked my certificates (which i bought sub 30p) in my re-visit 5 years time folder. I believe the demand for uranium will just grow and outstrip
supply and with it a large premium to, todays levels?
aimho
cyril
LR2
- 11 Sep 2008 13:52
- 26 of 427
Rio paid 38p for their shares so if there is a bid coming it is going to be in excess of that price.
niceonecyril
- 23 Sep 2008 19:53
- 27 of 427
Kalahari Minerals plc, the AIM listed mining exploration group with a portfolio of copper,
base metal and uranium interests in Namibia,
announces that Rio Tinto International Holdings Australia Pty Ltd ('Rio Tinto') has increased
its stake in ASX listed Extract Resources
Limited ('Extract') through the purchase of 4,684,033 ordinary shares on 18 September 2008.
This purchase increases Rio Tinto's substantial
holding to approximately 13.1% of Extract's total voting rights. This is following Kalahari
and Extract's announcement on 5 September 2008
regarding the proposed restructure by means of a merger of the two companies.
This purchase follows Rio Tinto's purchase of approximately 14.9% and 10.9% in Kalahari
and Extract respectively on 11 September 2008.
The restructure will consolidate ownership of the assets of each company into a single
corporate vehicle (the 'Enlarged Company'). It is
intended that the Enlarged Company will (subject to required approvals) be dual listed on AIM
and the ASX. Post restructure, Rio Tinto will
hold approximately 18.6% in the Enlarged Company.
Looks like RT are nibbling away?
cyril
niceonecyril
- 23 Sep 2008 19:55
- 28 of 427
Taken from another thread by fordtin.
Martin - posted the following on your hot copper '30% take-over' thread
Interesting to compare the significant holdings given on the website with the announced changes and last years website figures .
Would it be reasonable to assume that the Cenkos Channel Islands, account for the Niger holding and Euroclear are the new hiding place for the Blakeney LLP shares? HSBC Global Custody Nominee (UK) Limited holds exactly the same amount as City Natural Resources once held which would leave Geiger Counter and Henderson hiding in either Pershing or the Bank of New York.
166,559,130 * 3% = 4,996,774
any changes to a holding above this figure which cause it to cross a whole percentage point (up or down) must be reported "without delay"
Significant holdings reported since admission to AIM
(I have excluded any which have been superceded by a later change or reduced to below 3% via dilution)
10 September 2008 - Rio Tinto - 24,817,310 - 14.9%
08 September 2008 - Rab Capital - 5,227,747 - 3.14% (edit - this is reported as an indirect holding, is this something to do with their 16% of Niger? )
25 June 2008 - CQS - 11,716,667 - 7% [comprising (City Natural Resources - 6,716,667 - 4%),( Geiger Counter - 5,000,000 - 3% )]
17 April 2008 - Niger Uranium - 27,680,000 - 16.62%
15 April 2008 - Blakeney LLP - 17,840,000 - 10.71%
25 March 2008 - Henderson Global Investors Ltd - 6,400,000 3.84%
from company website
Key Shareholders as at 22 May 2007
RAB Special Situations (Master) Fund Ltd .....18,394,577
Coronet Resources Ltd ........................16,000,017
RAB Energy Fund Ltd .......................... 4,897,964
Willbro Nominees ............................. 4,027,215
Philip Richards .............................. 4,027,215
FMR Corporation .............................. 3,482,996
M.A. Hohnen ...................................3,047,622
Key Shareholders as at September 2008
Cenkos Channel Islands Nominee Company Limited ....... 27,780,000 ...16.679%
Rio Tinto International Holdings Australia Pty Ltd ... 24,817,310 ...14.900%
Euroclear Nominees Limited ........................... 18,106,200 ...10.871%
Coronet Resources Limited ............................ 16,000,000 ... 9.606%
Pershing Nominees Limited ............................ 10,915,900 ... 6.554%
The Bank of New York (Nominees) Limited ............... 8,366,000 ... 5.023%
HSBC Global Custody Nominee (UK) Limited .............. 6,716,667 ... 4.033%
The Bank of New York (Nominees) Limited ............... 5,968,701 ... 3.584%
Pershing Nominees Limited ............................. 5,835,300 ... 3.503%
BNY (OCS) Nominees .................................... 5,200,000 ... 3.122%
total = 73.961%
The EXT announcement dated 16th Dec 2005 suggests that Coronet are controlled by EXT directors, hopefully some of the long term holders here might be able to provide more detail.
http://www.asx.com.au/asxpdf/20051216/pdf/3ts7y8r9f1q0s.pdf
I think this is the rule Martin was referring to;
SECTION F. THE MANDATORY OFFER AND ITS TERMS
RULE 9
9.1 WHEN A MANDATORY OFFER IS REQUIRED AND WHO IS
PRIMARILY RESPONSIBLE FOR MAKING IT
Except with the consent of the Panel, when:
(a) any person acquires, whether by a series of transactions over a
period of time or not, an interest in shares which (taken together with
shares in which persons acting in concert with him are interested) carry
30% or more of the voting rights of a company; or
(b) any person, together with persons acting in concert with him, is
interested in shares which in the aggregate carry not less than 30% of
the voting rights of a company but does not hold shares carrying more
than 50% of such voting rights and such person, or any person acting
in concert with him, acquires an interest in any other shares which
increases the percentage of shares carrying voting rights in which he is
interested,
such person shall extend offers, on the basis set out in Rules 9.3, 9.4
and 9.5, to the holders of any class of equity share capital whether
http://www.thetakeoverpanel.org.uk/new/codesars/DATA/code.pdf
(page 110)
cyril
niceonecyril
- 29 Sep 2008 07:57
- 29 of 427
29 September 2008
Kalahari Minerals plc ('Kalahari')
Strongly mineralised uranium zones continue at Rossing South
Kalahari Minerals plc, the AIM listed mining exploration and evaluation group with a portfolio of copper and base metal prospects in Namibia, is pleased to provide an update released by Extract Resources Ltd ('Extract' or 'the Company'), in which Kalahari's subsidiary, Kalahari Uranium Limited, holds a 39.11% interest. Kalahari and Extract announced on 5 September 2008 the proposed restructure by means of a merger of the two companies by a recommended scheme of arrangement under the Australian Corporations Act.
Kalahari Chairman Mark Hohnen said, 'These are another set of excellent results from Extract further strengthening our belief that Rossing South is well on its way to achieving the preliminary target of between 126 and 198 million pounds U3O8. The results that we are witnessing are a clear indication that Rossing South is indeed, shaping up to be one of the most significant new uranium discoveries in the world in recent years.'
Extract Resources, (TSX:EXT;ASX:EXT), a Uranium exploration company with projects in Namibia, Africa, today announced further wide zones of high grade uranium mineralisation, at Rossing South.
Chemical assay results and downhole spectrometer data from Reverse Circulation (RC) drilling continue to demonstrate the continuity of alaskite hosted uranium mineralisation in both Zone 1 and Zone 2.
Three large capacity RC rigs continue to operate at Rossing South drilling Zone 1 on a 100 x 100 metre spacing to define an initial resource within the first quarter 2009. An additional two RC rigs are expected at Rossing South within the next four weeks. Once Zone 1 has been drilled out, resource definition drilling will resume on Zone 2.
Visual signs of uraniferous alaskite, such as smoky quartz and abundant biotite, along with hand held spectrometer readings taken from the one metre bulk RC samples, continue to indicate the intersection of broad zones of strong uranium mineralisation. These positive field indicators, along with the steady flow of quality chemical assay results from Rossing South, support the Company's view that Rossing South has the potential to become one of the largest uranium discoveries in many years.
Some of the chemical assays mentioned in this release have previously had downhole spectrometer results reported (ASX release 13 May 2008). A comparison of the downhole spectrometer surveys with the chemical assay results indicate the metal content is approximately 20% less with the chemical assays, which is as expected. The Company continues to treat spectrometer information as an estimate of the uranium mineralisation whilst waiting for confirmation by chemical assay results.
A more regular flow of chemical assay results is being returned now that the Company is also using the pressed pellet x-ray fluorescence ('XRF') method. Comparison sampling between the four acid digest, inductively coupled plasma mass spectrometry method and XRF have been favourable.
Extensive exploration potential still exists on the Husab Project with the remaining nine kilometre zone of prospective stratigraphy at Rossing South yet to be tested. Work on this and other target zones is planned for later in 2009, once the Company has established a maiden resource at Rossing South.
cyril
Andy
- 11 Nov 2008 19:28
- 30 of 427
New article, reads well!
Click HERE
niceonecyril
- 19 Nov 2008 14:11
- 31 of 427
RNS Number : 4660I
Kalahari Minerals PLC
19 November 2008
Kalahari Minerals plc / Ticker: KAH / Index: AIM / Sector: Mining & Exploration
The information contained herein is restricted and is not for publication, release or distribution, directly or indirectly, in or into the United States or to residents or citizens of the United States.
19 November 2008
Kalahari Minerals plc ('Kalahari' or 'the Company')
Termination of Proposed Restructure of Kalahari Minerals Plc and Extract Resources Limited
Overview
Implementation Agreement for proposed restructure of the ownership of Kalahari Minerals Plc and Extract Resources Limited terminated
Kalahari currently holds 39.11% of Extract's ordinary shares and will pursue other options to maximise the value of its stake
For the reasons outlined below, Kalahari Minerals Plc has formally advised Extract Resources Limited (ASX & TSX: EXT) ("Extract") that the approval of its shareholders will not be able to be secured and the merger announced on 5 September 2008 (the "Restructure") will not be able to be implemented.
As a result, the directors of Kalahari and Extract announce that the Restructure Implementation Agreement dated 5 September 2008 ("RIA") has been terminated and the Restructure will not proceed.
Background
The terms of the Restructure were announced to the market on 5 September 2008.
On 11 September 2008, Kalahari announced that Rio Tinto ('Rio") had acquired a 14.9% interest in Kalahari and a shareholding of 10.9% in Extract (Rio has subsequently increased its shareholding in Extract to 13.1%). Rio acquired its shares in both Kalahari and Extract from RAB Capital, which had been put under unforseen financial pressure caused by the global financial crisis. This was unfortunate as RAB had been a major supporter of Kalahari (as well as Extract) pre and post its float on AIM, fully participating in the Company's last capital raising in March 2008.
After the Restructure, Rio would have held approximately 19.8% of the enlarged company (on a diluted basis) and would have been entitled to further increase that stake without being subject to the 20% limit under the Australian takeovers provisions.
Following Rio's emergence on the register of Kalahari and Extract, concerns were raised by a number of Kalahari's larger shareholders about the potential for Rio to acquire effective control of the merged company without paying a premium for doing so. In addition, a number of those shareholders were concerned that Rio's material holding in the combined group would give it an unhealthy level of control and/or influence in relation to any future negotiations involving a potential transaction between Rio (or its related company, Rossing Uranium) and the merged company either at the asset or the corporate level.
Kalahari therefore sought further guidance and assurances from Rio regarding its intentions for the future control of the enlarged company.
In particular, Kalahari sought a commitment that Rio would not increase its shareholding in the combined group for a period of time after the merger was implemented (subject to a number of agreed carve-outs such as a third party making an offer for the merged company).
Unfortunately, it is now apparent that a standstill commitment will not be able to be agreed with Rio on terms which would satisfy the concerns raised by Kalahari's shareholders.
Kalahari has therefore advised Extract that it does not have the support of its major shareholders to pass the requisite resolutions at the planned meeting of Kalahari shareholders and the Restructure will not be able to be implemented.
Kalahari retains a 39.11% interest in Extract and now intends to consider a range of other options with a view to maximising the value of that interest.
(EDITED)
cyril
Andy
- 19 Nov 2008 23:08
- 32 of 427
Andy
- 15 Dec 2008 16:35
- 33 of 427
niceonecyril
- 13 Feb 2009 23:08
- 34 of 427
Taken my eye of this of late, record high and record trading this week with today more than double the previous best?
cyril
niceonecyril
- 18 Feb 2009 12:11
- 35 of 427
Just look at that chart,really flying at the minute. Worth checking out is URU who
hold a large %'age of these(more thanM/C alone), + 3M in cash and its own project for free.
cyril
required field
- 18 Feb 2009 12:56
- 36 of 427
Calamari......uranium squid soup of the day, along with Vane minerals, flying today indeed...been in since the 40p mark...best performing stock in my porfolio it seems !.
required field
- 18 Feb 2009 16:17
- 37 of 427
This is going ballistic...where is the top here ?, a pound or more ?.
required field
- 18 Feb 2009 16:27
- 38 of 427
Blimey, this looks like VOG of a few years ago but with more substance....could go all the way to 120p...perhaps ?.
required field
- 18 Feb 2009 16:30
- 39 of 427
Further to go tomorrow morning...big big buys coming in...one of the largest uranium deposits in the world...!.
required field
- 18 Feb 2009 16:35
- 40 of 427
Well for me this was the dish of the day !.