URU Metals Limited Regulatory News (URU)

20 Mar 2008 13:33

Niger Uranium Limited20 March 2008 For immediate release 20 March 2008 Niger Uranium Limited ("Niger Uranium" or the "Company") Acquisition of substantial interest in Kalahari Minerals PLC Niger Uranium, the uranium focused exploration and investment company withinterests in the Republic of Niger, Africa, announces that it has acquired20,000,000 ordinary shares ("Kalahari Ordinary Shares") in Kalahari Minerals PLC("Kalahari Minerals"), representing 17.8 per cent. of Kalahari Minerals'existing issued share capital, at a price of 50p per Kalahari Minerals ordinaryshare (the "Purchase"). In addition, Kalahari Minerals has announced today the terms of a conditionalplacing of 46,080,000 new Kalahari Ordinary Shares at a placing price of 31.25pper Kalahari Ordinary Share (the "Placing Price"). Niger Uranium hasconditionally subscribed for a further 7,680,000 new Kalahari Ordinary Sharespursuant to the placing at the Placing Price (the "Subscription"). Accordingly,on completion of the Purchase and the Subscription, Niger Uranium will own27,680,000 Kalahari Ordinary Shares representing approximately 17.5 per cent. ofthe enlarged issued share capital of Kalahari Minerals. The Directors of Niger Uranium believe that the acquisition of a substantialstake in Kalahari Minerals provides Niger Uranium with interests in nearer-termpotential uranium production and a diversification of its uranium portfolio intoNamibia, a country with a reputation for having a positive approach to thedevelopment of mining projects. Kalahari Minerals is an AIM-listed exploration and development company whoseprincipal asset is a 36.2 per cent. interest in Extract Resources Limited("Extract Resources"), an ASX-listed uranium exploration and development companywith uranium exploration licences in Namibia, Africa. Extract Resources is notproducing and while it has commenced drilling, has not declared any resources orreserves. Kalahari Minerals' interest in Extract Resources is currently valuedat approximately £35 million (based on the latest Extract Resources shareprice). In addition to its shareholding in Extract Resources, Kalahari has interests inthe Dordabis and Witvlei copper exploration properties, also located in Namibia,Africa, in the Kalahari copper belt. In respect of the Dordabis property,Kalahari Minerals has a JORC compliant preliminary resource. Drilling hascommenced on the Witvlei property but no resources or reserves have yet beendeclared. The consideration for the Purchase is £10,000,000 which has been satisfied by acash payment of £5,070,000 (financed from the Company's existing cash balances)and the issue of 17,000,000 new Niger Uranium ordinary shares of US$0.01 each("Ordinary Shares"). In addition, the cost of the Subscription is £2.4 million(also to be financed from the Company's existing cash balances). Applicationwill be made for the new Ordinary Shares to be admitted to trading on AIM,following which Niger Uranium's enlarged issued share capital will amount to100,000,000 Ordinary Shares. Admission of the new Ordinary Shares is expected tobecome effective on 31 March 2008. James Mellon, Non-Executive Chairman of Niger Uranium, said: "Niger Uranium's strategy continues to build and develop a high qualityportfolio of uranium assets and interests in exploration and investmentcompanies alongside the development of its wholly-owned uranium explorationprojects in Niger. "The acquisition of this substantial investment in Kalahari Minerals gives NigerUranium an interest in nearer-term potential uranium production and also takesit into a second African country, Namibia, which is recognised as having apositive approach to the development of mining projects." Kalahari Minerals reported an audited loss before taxation of £1,443,000 in theperiod from 1 January 2006 to 31 December 2006. In the six months ended 30 June2007, Kalahari Minerals reported an un-audited profit before taxation of£10,107,000, which included a profit of £12,047,000 in respect of its share ofprofit from associates. Audited total shareholder equity as at 31 December 2006amounted to £5,332,000 and as at 30 June 2007 amounted to £16,635,000. Theacquisition is not expected to have a material impact on Niger Uranium'searnings in the current year. Contacts: Niger Uranium Limited Tel: + 27 82 404 36 37James Mellon, Non-Executive ChairmanIan Stalker, Executive Deputy Chairman and Chief Executive Officer Beaumont Cornish Limited Tel: + 44 (0) 20 7628 3396Roland Cornish / Michael Cornish Haywood Securities (UK) Limited Tel+ 44 (0) 20 7031 8011Thomas Beattie Financial Dynamics Tel + (0) 20 7831 3113Ben Brewerton ENDS This information is provided by RNS The company news service from the London Stock Exchange