Companies: KAH    RIO   

Mining giant Rio Tinto has bought 14.9 per cent of soon-to-be-merged Namibian metals play Kalahari Minerals for £9.5 million.

Rio, which owns Namibia’s longstanding Rossing uranium mine, has paid 38p a share for this stake in Kalahari, an AIM-quoted copper and base metals concern that is in the process of merging with Aussie-quoted Extract Resources, another Namibian uranium seeker. Rio has also emerged with nearly 11 per cent of Extract, which is interested in the potentially promising Rossing South project, near Rio Tinto’s mine.

If the Kalahari/Extract deal goes through, Rio will have a substantial stake in the combined company. Highlighted as a ‘punt’ at 22.25p by Growth Company Investor a year ago, Kalahari shares reached 46p in February and are 2.25p up today at 36.5p. For punters.

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