Extract Resources Ltd. (EXT.AU), which holds a key uranium project in Africa, said Wednesday it wants a Chinese state-owned company that may make a takeover bid for its largest shareholder to extend any offer to its own shareholders.

Extract, an Australia-based uranium explorer, said that if the offer isn't extended, Australian regulators should deny a request by CGNPC Uranium Resources Co., a unit of state-owned China Guangdong Nuclear Power Corp., to be exempted from provisions that would otherwise force it to launch a secondary bid for Extract if it succeeds in acquiring Kalahari Minerals PLC (KAH.LN).

Kalahari, which holds an almost 43% stake in Perth-based Extract, on Monday said it was discussing a possible cash offer from CGNPC-URC at 290 pence a share, which would value it around 756 million pounds ($1.22 billion). It said in a statement that CGNPC-URC plans to seek relief from the Australian commission to buy more than 20% of Extract, a level after which an acquirer needs to make a takeover offer to all shareholders.

Extract said it will make submissions to the regulator to protect the interests of its shareholders and ask that either an offer be extended on "no less than equivalent terms" to that offered to Kalahari shareholders or for CGNPC-URC's request for relief from the takeover rule to be denied.

At stake is control of the Husab uranium project in Namibia, one of the largest undeveloped uranium deposits in the world. The project lies only a few kilometers from the massive Rossing mine owned by Rio Tinto Ltd. (RIO), which owns an 11.5% stake in Kalahari and a 14% interest in Extract. Rio Tinto has been in talks with Extract over the possible merging of Husab with Rossing.

Industry analysts have for years speculated Rio Tinto would eventually acquire Extract in a move that would extend its uranium reserves and help bring Husab to production. Spokespeople for Extract and Rio Tinto declined to comment when contacted by Dow Jones Newswires.

Kalahari in its statement Monday said CGNPC-URC was in discussions with possible consortium partners that might join as minority investors in its takeover bid. The proposed offer, which has the support of Kalahari's board, is subject to a number of conditions, including regulatory clearances in Australia and China and finalizing funding.

Speculation over a possible bid for Extract buoyed its shares for a second day Wednesday, ending the day 8% higher at A$10.73, giving it a market capitalization of 2.69 billion Australian dollars ($2.51 billion).

Liu Kaixin, director of public office at Guangdong Nuclear, declined to comment on the planned bid for Kalahari. A spokesman for the Australian Securities and Investments Commission said the regulator doesn't comment on whether applications have been received or are under consideration.

Rio Tinto, meanwhile, will in coming days have to decide whether to extend a A$3.9 billion offer for Australia's Riversdale Mining, which is developing coking coal projects in Mozambique. Riversdale's two largest shareholders--Tata Steel Ltd. (500470.BY) of India and Cia. Siderurgica Nacional (SID)--have increased their shareholdings and now together own a 47% stake. The offer has already twice been extended by 14 days, most recently until March 18.

-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094; robb.stewart@dowjones.com

--Zhoudong Shangguan in Beijing contributed to this article.
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