Khan Resources Inc. (TSX:KRI) announced Thursday that its offer to acquire the outstanding common shares of Western Prospector Group Ltd. for 0.685 of a Khan common share will be extended to August 8.

On July 15, Tinpo Holdings Industrial Company Limited announced its intention to make an offer to acquire all outstanding Western Prospector common shares. Tinpo's offer is expected to be filed on or before July 29.
"We are extending our offer to expire after Tinpo files its offer documents so that we can properly assess the Tinpo offer before determining how to proceed. We would like to give Western Prospector shareholders the opportunity to consider Khan Resources' offer as an alternative to this all cash offer which caps Western Prospector shareholders' upside at the bottom of the upturn in the uranium cycle, at a time of increasing acceptance of nuclear power throughout the world and after the people of Mongolia have recently elected a majority government," said Martin Quick, CEO of Khan Resources.
Quick continued, "We will wait to see the offer documents and will reassess our position at that time, but we are pleased that Tinpo is recognizing the value of uranium in the Saddle Hills area. We note that if we apply the same value per pound of contained 43-101 resources implied by the Tinpo bid to our resources, the Khan share price should be in excess of $2.45 per share." 
Under the terms of Khan's offer, Western Prospector shareholders would receive approximately 40% of the combined company in return for only 32% of its resources.

 

Source: Mongolia Web News
July 29, 2008