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Khan Resources seeks to take over Western Prospector Group’s property |
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Tuesday, 13 May 2008 |
 Khan Resources Inc. (TSX: KRI)
announced Monday that it will seek to acquire all outstanding common
shares of Western Prospector Group Ltd. (TSX VENTURE: WNP) in order
to shore up its position around the Saddle Hills site.
In Mongolia, Khan Resources
already operates Dornod uranium deposit and Western Prospector's Gurvanbulag
uranium deposit.
The acquisition of Western
Prospector is expected to result in a combined savings in excess of
US$100 million, as a result of the construction of one common mill (rather
than two separate mills) and the sharing of infrastructure. Khan Resources
also anticipates significant operating cost savings from common ownership
of the Dornod and Gurvanbulag deposits following the consolidation of
head office and management and administrative teams.
CEO of Khan Resources, Martin
Quick, commented Monday, "This is a natural combination of two
companies working towards the same goals in the same area. Western Prospector
shareholders benefit by getting access to a rich and advanced Uranium
deposit that can quickly be brought into production and by receiving
a premium to their stock price. Khan shareholders benefit from an extensive
exploration potential and by becoming more attractive to the Mongolian
government as a mid-tier near-term producer."
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