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Extract Resources updates market on potential downstream offer

Extract Resources updates market on potential downstream offer

Extract Resources (ASX: EXT, TSX: EXT) has received notification from Taurus Mineral Limited, an entity owned by CGNPC Uranium Resources Co. and the China-Africa Development Fund, advising that offer documentation has been posted to shareholders of Kalahari Minerals.

Taurus previously made a cash offer for Kalahari Minerals, Extract’s 42.74% shareholder, of 243.55 pence (A$3.66) per Kalahari share.

The deal also includes a proposal to make a downstream cash offer to Extract shareholders of A$8.65 per Extract share if Taurus receives acceptances of the offer of more than 50% of the voting rights in Kalahari.

Taurus previously announced it has been granted relief by the Australian Securities and Investments Commission to acquire an interest of more than 20% of Extract’s shares provided it makes a downstream offer for the company.

Offer documentation must be dispatched to Extract shareholders within four weeks of Taurus having received acceptances of the offer of more than 50% of the voting rights in Kalahari.

The Kalahari offer will remain open until 2 February 2012, unless extended by Taurus.

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