The acquisition is subject only to requisite approvals by shareholders of the vendor of the majority of the shares, Polo Resources, and to Australian Foreign Investment Review Board (FIRB) approval being obtained for the acquisition of certain of the Extract shares.
Assuming satisfaction of the conditions, upon completion of the acquisition, Itochu would become one of the largest shareholders of Extract, the company claims.
Extract owns 100% of the Husab (Rossing South) Uranium Project in the Republic of Namibia. Husab is currently under a feasibility study for first production in 2013 or 2014.
In May 2010, with financial support from Japan Oil, Gas and Metals National (JOGMEC), Itochu acquired a 14.9% stake in Kalahari Minerals, whose main investment is a 41% interest in Extract.
The company said that uranium demand is expected to increase due to the necessity of greenhouse gas emission reduction and the expansion of global nuclear power generation.
