Recognizing post-Fukushima reality, Kalahari accepts lower bid from Chinese nuclear company
Kalahari Minerals (LON:KAH), whose main asset is the Husab uranium project in Namibia, has accepted a cash offer from Chinese Guangdong Nuclear Power Corp (CGNPC) valuing the London-listed company at $993 million.
Kalahari shareholders will receive 243.5 pence for their shares, which is about 16% higher than the average closing price of the shares for the six months up to March 4, when CGNPC first tabled the offer for the uranium, gold and copper junior.
The company states on its website that the Husab project is the largest in-situ uranium deposit in Namibia, with JORC- compliant measured and indicated resources of 358.1 Mlbs and an inferred resource of 154.8 Mlb. The deposit has the potential to become one of the top three largest uranium mines in the world, producing 15 Mlb of U3O8 by open-pit mining, according to Kalahari Minerals.
Mining Weekly reports "If CGNPC is successful in its bid, it would have to offer to buy all of Australia-based Extract Resources, in which Kalahari owns a 43% stake, unless Australian regulators were to make an exception to the regulations."
Mining Weekly also notes that the offer is lower than the 290p per share that CGNPC initially offered on March 4th before renegotiating down to 270p after the Fukushima nuclear disaster which caused the valuation of uranium companies to crash.
"In the light of the unexpected circumstances in Japan and their impact on uranium equities, the Kalahari Directors recognize the altered market dynamic and subsequently views the offer from CGNPC-URC as attractive," Kalahari Executive Chairman Mark Hohnen stated in a news release.
Kalahari closed up 3.14% in London on Thursday to 241.86p.