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Kalahari wants Extract chair fired

Cape Town - Two mining companies with interests in Namibia have fallen out so badly that one is trying to get the other's shareholders to sack its chairperson.

Kalahari Minerals plc, listed on London's exchange for smaller companies - AIM - was recently frustrated in its attempt to merge with the Australian company Extract Resources Ltd, listed on the Australian Securities Exchange.

Kalahari's subsidiary, Kalahari Uranium Limited, holds a 39.05% interest in Extract.

At the time of the proposed merger it was agreed that the current chairperson Bob Buchan would retire, and even though the merger did not go through Kalahari has proposed to Buchan that he should step down from the board. Buchan refused.

Now Kalahari has sent a notice to requisition a meeting of shareholders to consider a resolution to vote him off. "The board of Kalahari believes his removal is to the benefit of shareholders in both Kalahari and Extract," a statement from Kalahari said on Monday.

The company explained that Buchan was appointed as part of a strategy to build Extract's presence in North American capital markets, and to coincide with the dual listing of Extract shares on the Toronto Stock Exchange. "The Board of Kalahari believes that unfortunately this strategy has not delivered results for Extract, with only a small number of Canadian shareholders being generated at a considerable cost," the statement said.

Kalahari also believes that the dual listing of Extract shares on the Toronto Stock Exchange should be terminated as it is not delivering any advantage for Extract shareholders, and is an unnecessary cost at a time when all non-essential costs need to be eliminated.

"Kalahari believes that it no longer makes sense to have a chairman located in North America," the company said, adding: "Unless Mr Buchan resigns, the board of Extract must convene and hold a meeting within two months of the date of the requisition."

- I-Net Bridge

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