Hong Kong-listed trading company APAC Resources Limited is to buy up to 7.1% of Kalahari Minerals, giving it a major investment in the mining company which is looking to develop Namibian uranium interests.
London-based Kalahari announced that it has agreed to sell up to 16 million ordinary shares at a price of £1.85 ($2.79) each, equivalent to a total of £29.6 million ($44.6 million). The shares will be sold in two tranches, with the first tranche of 4.8 million shares to be acquired by APAC on 7 May and the second tranche of at least 7.4 million and up to 11.2 million shares on or by 10 June.
Kalahari executive chairman Mark Hohnen welcomed APAC as a shareholder register, noting that the development gave further support to the company's "already strong institutional backing" – APAC joins Japanese trading house Itochu, which agreed to take a 15% share of the company in March 2010. According to Hohnen, APAC's" invaluable relationships and contacts in the Chinese commodities market" will further strengthens Kalahari's exposure to the Asian resource sector. APAC is a natural resources and investment trading group with a focus on base metals.
Kalahari has uranium, gold and base metals interests in Namibia, with its key investment being its 40% holding in Australia-based Extract Resources, owner the of Rössing South uranium deposit. The project, also known as the Husab Uranium Project, is located due south of Rio Tinto's operating Rössing uranium mine, and is currently undergoing feasibility studies with a view to starting production in 2013.
Researched and written
by World Nuclear News