Extract Shares Halted As Kalahari-China Guangdong Deadline Looms

Trading in Extract Resources Ltd. (EXT.AU) was halted Thursday at the company's request ahead of a deadline for China Guangdong Nuclear Power Corp. to decide whether to proceed with a bid for Kalahari Minerals PLC (KAH.LN), Extract's biggest shareholder.

In a letter to the Australian securities exchange, Extract said it expects an announcement to be made on the London Stock Exchange concerning negotiations between Kalahari and state-owned CGNPC. Under Australian takeover rules, a bid for Kalahari would trigger an offer for 43%-owned Extract.

CGNPC has until late in the London day Thursday to announce a firm intention to make an offer for Kalahari - unless the U.K. Takeover Panel agrees to extend the deadline. Kalahari has said the Chinese company may make a cash offer at 243.55 pence a share.

Kalahari's key asset is its investment in Extract, which is developing one of the world's largest uranium deposits in Namibia.

Extract early this month was given a mining license for its Husab project, which neighbors Rio Tinto PLC's (RIO) Rossing uranium mine. Rio owns an almost 12% stake in Kalahari and has a 14% interest in Extract.

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