Uranium miner Paladin Energy Ltd’s
(ASX:PDN) takeover bid for mineral exploration company NGM Resources Ltd
(ASX:NQM) has been abandoned because of terrorism in North Africa.
Paladin says that its off-market scrip takeover offer for NGM will lapse on 8 October as a result of the “defeating conditions being triggered”.
Earlier this month NGM directors unanimously recommended its shareholders accept Paladin’s offer of one fully paid ordinary share for every 23.9 NGM shares.
However, one of the conditions of the offer was that there should be no outbreak of hostilities in the regions which NGM operates, which could negative impact the performance or profitability of the company.
On 16 September Paladin says that forces associated with al-Qaida in North Africa entered a uranium mining region in Niger and abducted seven people employed by a French uranium company.
Paladin says in light of these unforseen events, NGM’s ability to safely access, explore and develop the resource base of its exploration tenements after the takeover would be seriously compromised, concluding that the offer conditions are no longer able to be fulfilled.
Paladin says it intends to retain the 22.48 per cent stake it currently holds in NGM and maintains its interest in Niger as a strategic region.
Paladin Energy booked a loss of $63.12 million for the twelve months to 30 June 2010.
