UPDATE 1-Khan Resources says CNNC to drop takeover bid

* Says CNNC fails to get regulatory approval

* Says no reason given by regulators or CNNC

* Khan board to meet to consider options

* Shares slide 64 percent

May 21 (BestGrowthStock) – Khan Resources Inc (KRI.TO: ) said its
proposed acquisition by CNNC Overseas Uranium Holding Ltd would
not go ahead as the Chinese company has failed to obtain
regulatory approval, sending shares of Toronto-based Khan down
64 percent.

Khan Resources said no reason was given by CNNC or the
National Energy Administration, an arm of the Chinese National
Development and Reform Commission, for the refusal to approve
the deal. CNNC will allow the offer to expire on May 25, Khan

Khan said its board would consult its legal and financial
advisers and management to consider its options.

In February, CNNC, a wholly owned private subsidiary of
China National Nuclear Corporation, China’s state-owned leading
uranium development and nuclear fuel company, had offered to
acquire all shares of Khan for C$56.5 million, or 96 Canadian
cents per share, in cash.

The Canadian explorer has been facing problems from the
Mongolian authorities with regard to its flagship uranium
project in the country.

Shares of the company, which have halved in value in the
last three months, were trading down 57 percent at 22 Canadian
cents in afternoon trade Friday on Toronto Stock Exchange. They
touched a 52-week low of 18.5 Canadian cents earlier in the

Investment Tools

(Reporting by Abhiram Nandakumar in Bangalore; Editing by Don

UPDATE 1-Khan Resources says CNNC to drop takeover bid