Reuters reported that Extract Resources has won a licence to develop its Husab uranium mine in Namibia which could help push up the price a Chinese suitor may offer for the USD 2 billion Australia based company in a widely expected buyout bid.

State owned China Guangdong Nuclear Power Corporation is in talks to take over Extract's 43% shareholder, Kalahari Minerals with Husab seen as the key target.

Extract said that it had accepted the terms that Namibia's Ministry of Mines and Energy had set for granting a licence for Husab and the ministry would direct the mining commissioner to issue a licence for the project.

Mr Jonathan Leslie CEO of Extract said that "This marks the final step to achieving all of the permits that we need in order to begin the development of the Husab Uranium Project. Talks with financiers and potential strategic partners to help raise the USD 2 billion needed for the project was progressing.”

Extract has been in talks with global miner Rio Tinto to link development of Husab with Rio's neighboring Rossing uranium mine. Rio Tinto owns an 11 percent stake in Kalahari and 14% stake in Extract.

CGNPC, which first approached Kalahari in March just before Japan's Fukushima disaster has until December 8th 2011 to decide whether to go ahead with a bid for Kalahari or be forced to wait a further 6 months before it can come back with another offer.

Under Australian rules, CGNPC would be required to follow up with an offer for Extract once it owns more than 20% of the company unless the securities regulator grants an exception.

(Sourced from Reuters)