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Potentially the second largest uranium mine in the world, Husab is being developed by Australian exploration company Extract Resources.

The Chinese investors, through an entity called Taurus Mineral, last month announced a R12 billion offer for London and Namibian listed uranium miner Kalahari Minerals, which is Extract Resources' largest shareholder with a 42.79% stake.

Once it receives acceptances to 50% of Kalahari, Taurus will make an Aus$2.2 billion offer for Extract within a month.

Updating the market on the proposed downstream offer on Friday, Extract advised that Taurus has set February 2 as the date on which its offer for Kalahari will close.

This means that if it receives the requisite number of acceptances by that date, an offer for Extract could be made in early March.

As previously announced, Taurus has been granted relief by the Australian Securities and Investments Commission to acquire an interest of more than 20% of Extract's shares provided that, among other conditions, Taurus makes a downstream offer for Extract.

"Offer documentation must be dispatched to Extract shareholders within four weeks of Taurus having received acceptances of the Kalahari offer in respect of more than 50% of the voting rights in Kalahari," Extract said in a statement to the JSE.

Taurus has offered 243.55 pence a share for Kalahari and the downstream offer for Extract is Aus$8.65 a share.

Extract said its independent directors were "continuing to review all available opportunities to maximise shareholder value", and intended to make a recommendation in relation to the proposed Taurus offer when such an offer is made to shareholders.

At the heart of Extract is the Husab Uranium Project in Namibia.

The project, which neighbours Rio Tinto's Rossing uranium mine, is expected to cost an estimated US$1.48 billion or R12 billion to build.

In August Extract announced a 37% increase in reserve at Husab.

These increased reserves extends the projected mine life to more than 20 years and increases the overall project value.

The definitive feasibility study on the project, released in April this year, envisaged open pit mining of 15 million tonnes of ore per annum and a conventional acid leach plant producing about 15 million pounds per annum of uranium equivalent.