Shares in Extract Resources Ltd (ASX:EXT) jumped yesterday, after news the uranium explorer’s major shareholder, Kalahari Minerals, had received a takeover bid from Chinese state-owned CGNPC Uranium Resources Co Ltd.
The Chinese uranium company has launched a $1.2 billion bid for Kalahari, listed on both the London and Namibian Stock Exchanges.
Yesterday Extract said it had noted the announcement and was considering the implications for the company, which could involve Extract receiving a bid under the Takeovers Code.
Extract holds the Husab project in the African country of Namibia, believed to be world's fifth-largest known primary uranium deposit.
Yesterday shares in Extract Resources rose 7.34 per cent, or $0.68 cents, to close at $9.94, after reaching a high of $10.00 earlier in the day.
In the six months to the 31 December 2010, Extract Resources booked a net loss of $33.6 million.
