Paladin Energy Mulls NGM Resources Takeover

Paladin Energy Ltd (ASX:PDN) is in talks to take over NGM Resources Ltd (ASX: NGM). NGM is a diversified mineral exploration company with a focus on uranium and base metals.

It is based in Perth and has agreements for uranium exploration projects in Niger, West Africa and some metal exploration projects in Madagascar in Southern Africa.

Given Paladin Energy's focus in Africa and strategy to become a major uranium mining house NGM seems a logical acquisition. While the company is yet to make a decision on the takeover, Paladin is undertaking due diligence on NGM and is negotiating with the Board of NGM in terms of a potential takeover bid.

The market capitalisation of NGM is $16.78 million, while Paladin's market capitalisation is $2.59 billion. Niger is the world's fourth largest uranium producer and last week NGM announced success at its drilling program in Niger's Tim Mersoi basin. Promising iron ore and mineral sand concessions have been identified by NGM in Madagascar as well.