Extract Resources: Institutions Have Asked To Join Funding

Extract Resources Ltd. (EXT.AU) has been approached by a number of institutions asking to participate in the funding of its planned Rossing South mine, the chairman of the Namibia-focused uranium explorer said Wednesday.

Steve Galloway said the company has yet to begin discussing funding plans for the project, unveiled two years ago and located about five kilometers south of Rio Tinto PLC's (RTP) existing Rossing mine, but has been approached.

He said that if all goes to plan, production is expected to begin in late 2013 on what could be the world's second-largest uranium mine, producing 14.8 million pounds of U3O8 a year. This would position Extract among the top five producers of the metal, used in nuclear power stations and weapons globally, he said during the Africa Mining Indaba industry conference.

"It has all the redeeming features of a great uranium mine," Galloway said.

The Australian company is 41%-owned by Kalahari Minerals PLC (KAH.LN) and 15% by Rio Tinto.

-By Robb M. Stewart, Dow Jones Newswires; [phone]; [e-mail]