Uranium producer Paladin Energy says it is considering taking over NGM Resources.
"Paladin advises that it is currently undertaking due diligence on NGM Resources and is negotiating with the board of NGM in terms of a potential takeover bid," Paladin said.
"The board of Paladin has not yet made a decision on this matter."
Shares in NGM went into a trading halt yesterday, while shares in Paladin Energy were down 4 cents at $3.57 in morning trade.
NGM is a minerals explorer that focuses on uranium and nickel.It has projects in Queensland, Niger in West Africa, and in Madagascar.
Niger is the world’s fourth largest uranium producer.
The market capitalisation of NGM is $16.78 million, while Paladin’s market capitalisation is $2.59 billion.
Last week, NGM announced success at its drilling program in Niger’s Tim Mersoi basin.
In Madagascar, NGM said it had identified promising iron ore and mineral sand concessions.
AAP