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 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.
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