Kalahari Minerals (AIM: KAH) said it is fully supportive of the changes being made to the board of its 40.37% owned associate, Extract Resources (TSX, ASX: EXT). Following today’s appointment of recently hired chief executive Jonathan Leslie to Extract’s board of directors, Rio Tinto’s (LSE: RIO, ASX: RIO) representative Chris McFadden will now step down from his position as one of Extract’s non-executive directors.
McFadden’s resignation is the result of a previous agreement between Rio Tinto and Extract, whereby Rio Tinto's nominated representative would resign from the board of Extract upon the appointment of a CEO.
Leslie joined the company as CEO on 1 March 2010.
“We are fully supportive of the appointment of Jonathan Leslie, Extract's current CEO, to the Extract Board, who we believe has the ability to take Extract to the next stage in its rapid development, building the business and delivering a world class producing mine at Rossing South”, Kalahari executive chairman Mark Hohnen, said.
"As stated previously, Jonathan has an exceptional level of experience in the uranium sector, particularly in Namibia, where he was managing director of Rössing Uranium, Rio Tinto's subsidiary, which operates the producing Rossing Mine”.
Kalahari noted that as Extract enters a transformational period in its development, the companies are scheduled to meet with the President of Namibia tomorrow to introduce Jonathan Leslie and to provide a progress report on the Rossing South Project.
Last week Stephen Dattels, Polo Resources (AIM: POL) co-chairman, announced his decision to step down from his position as a non-executive director of Extract.
"As Extract's major shareholder, the Board of Kalahari would also like to take this opportunity of thanking Chris McFadden and Stephen Dattels for their guidance and contribution to Extract's development and wish them well in their future activities", Hohnen added.
Disclosure: The author holds no positions in the company