Kalahari Minerals closes second tranche of APAC equity sale

Kalahari Minerals (LON:KAH) noted that the second tranche of the sale agreement between Kalahari and APAC Resources (HKG:1104) - a major Hong-Kong listed natural resource investor - has now been completed.  APAC bought 11.2 million Kalahari shares from Kalahari’s wholly-owned subsidiary Coronet. Subsequently, APAC’s increased shareholding now stands at 21.585m shares, representing 9.55% of the company.

"APAC's strategic investment in Kalahari provides the company with an entry point to the Asian resource industry and in particular access to China, which I believe strengthens our position as we work together with Extract to develop the Husab uranium project”,  Kalahari executive chairman Mark Hohnen commented.

“Importantly, this latest purchase of shares under the agreement with Coronet and APAC was completed at a price of £1.85 per share, a significant premium to the current trading price, underpinning APAC's confidence in Kalahari's ability to crystallise value for shareholders,"  he added. 

On 4 May, APAC agreed to acquire a 7.1% stake in the company for £1.85 per share, giving Kalahari funds of £29.6 million along with “further support for strong institutional backing” and increased exposure to the growing Chinese market. The first tranche, of 4.8m shares for £8.9 million, was completed on 7 May. The proceeds will be used for general working capital purposes.
APAC has separately bought the remaining 5.585m shares in the market.

The company intends to “keep an active dialogue” with APAC and other institutional investors to ensure a rapid development of its uranium, gold, copper and other base metal interests in Namibia. Major Japanese conglomerate and one of the largest uranium traders in the world, the ITOCHU Corporation (TYO: 8001), is acquiring a stake in Kalahari totalling 15%.
Kalahari Minerals holds a 40.41% stake in Extract Resources (TSX, ASX: EXT), which holds the rights to the Rossing South uranium mine in Namibia. Previous estimates have suggested the mine could support production of nearly 6,700 tonnes of uranium per annum, which would more than double Namibia’s entire annual output and would be significantly larger than the nearby Rossing Mine, currently the third largest uranium in the world, and 68.6% owned by Rio Tinto (LSE:RIO, ASX:RIO).

http://www.proactiveinvestors.co.uk/companies/news/17541/kalahari-minerals-closes-second-tranche-of-apac-equity-sale-17541.html