Kalahari Minerals calls NWT proposal to issue Extract Resources stake to shareholders value destructive

Kalahari Minerals (AIM: KAH) said that the redistribution of its stake in Extract Resources (ASX&TSX: EXT) to its shareholders would be value destructive and turn off its major institutional investors after the move was proposed by Niger Uranium (LSE: URU) shareholder NWT Uranium Corp (TSX-V: NWT).

Niger Uranium holds a 15.5% stake in Kalahari Minerals, while NWT has a 35.13% shareholding in Niger.

NWT Uranium Corp requested an extraordinary general meeting (EGM) of Niger Uranium shareholders with the proposed resolutions including a requisition of a general meeting (GM) of Kalahari shareholders to redistribute at least 90% of the shares owned by the company in Extract Resources to its shareholders.

Kalahari responded by saying that it has maintained a good relationship with a number of Niger shareholders with did not support NWT’s proposed redistribution resolution. The company added that it was focused on driving value in Extract, which it said was strongly supported by its institutional shareholder base.

Niger Uranium earlier stated that it supported Kalahari and the development of its portfolio of uranium, gold, copper and other base metal interests in Namibia.  http://www.proactiveinvestors.co.uk/companies/news/12795/kalahari-minerals-calls-nwt-proposal-to-issue-extract-resources-stake-to-shareholders-value-destructive-12795.html