Extract Resources Ltd. is poised for a major investor confidence boost this week as share prices already climbed 10 percent Monday morning amid reports that China Guangdong Nuclear Power Corp (CGNPC) had re-opened talks to acquire Extract's biggest shareholder, Kalahari Minerals, even as CGNPC had earlier stated it is not keen to a takeover bid into the Perth-based miner.

A report by London's Sunday Times over the weekend said the state-owned CGNPC expressed interest to revive its $US1 billion bid on Namibia-based Kalahari, after earlier negotiations got derailed following the March 2011 Japanese earthquake and nuclear disaster at Fukushima nuclear plant.

Extract shares on Monday morning jumped to a high of $8.88 and last traded up 10 per cent at $8.86. The present figures place Extract's value at $2.22 billion.

Kalahari's takeover bid by CGNPC is said to possibly occur this week, according to the Sunday Times. If it pushes through, CGNPC is compelled to likewise tender a bid for Extract because under Australian laws, CGNPC's full hold on Kalahari would mean also owning more than 20 percent of Extract.

Kalahari is Extract's biggest shareholder by as much as 42.7 percent. Other key stakeholders include Rio Tinto at 14 percent and Japan's Itochu Corp at 10 percent.

Although CGNPC may opt not submit a bid for Extract, it is doubtful the Australian Securities & Investments Commission (ASIC) will allow it. A Reuters source, however, refused to elaborate if CGNPC did file for a takeover bid exemption on Extract before ASIC.

Guangdong's new offer for Kalahari is an 11 percent increase of 270p a share from the previous 240p price the last time it closed at London's Alternative Investment Market.

In March, Guangdong's initial offer was 290p a share for Kalahari in March. But the China state-owned firm slashed its offer to 270p a share when prices of uranium markets went down because of the Fukushima disaster. Negotiations eventually wavered when Britain's Takeover Panel declined to the price slash offer, placing the talks in a three-month cooling-off period. It has since expired.

In the previous bid, CGNPC had explicitly stated it would apply to ASIC for an exemption to make a bid for Extract.

Guangdong's key target in its bid for Kalahari is Extract's Husab uranium project that it is currently developing in Namibia. It is touted as the second-largest uranium mine in the world, and is expected to be China's key supplier for its nuclear power stations.

China is into an aggressive pursuit to acquire massive chunks of natural resources around the world primarily to provide electricity and power to its country where supply can no longer cope up with rapid urbanization's demand. The country is poor in oil and gas.