PERTH (miningweekly.com) – ASX- and TSX-listed uranium producer Paladin Energy may make a takeover offer for Australian junior NGM Resources, MD John Borshoff said on Tuesday.

The company advised shareholders that it was currently undertaking a due diligence study on the Perth-based uranium and base-metals explorer.

“The board of Paladin has not yet made a decision on this matter,” Borshoff said.

He noted that the market capitalisation of NGM represented only 1% of Paladin’s own market capitalisation.

NGM has projects in Niger and Madagascar. The company’s subsidiary, Indo Energy, has been granted three uranium exploration tenements in the Tim Mersoi basin, in West Africa.

Paladin owns operating mines in Namibia and Malawi and projects in Australia.

The miner is targeting production of seven-million pounds of uranium oxide in the next financial year, which ends on June 30, 2011.

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