Paladin Energy Ltd will allow its $27 Million takeover offer for NGM Resources Ltd to lapse, after terrorist activity in North Africa raised concerns about the future of NGM's exploration and development in the area.
The abduction of seven employees of French uranium company Areva and its contractor, from Arlit, a Nigerian uranium mining town, meant the conditions of Paladin's all-scrip offer could not be fulfilled, the company said in a statement.
"In the light of these material unforeseen events, NGM's ability to safely access, explore and develop the resource base of its exploration tenements following the completion of the takeover bid would be seriously compromised," Paladin said.
"Safety concerns would prevent Paladin Group expatriate personnel from working in Niger’s uranium region within a suitably secure environment for an, as yet, unknown period of time."
According to an Associated Press report, al-Qaida-linked gunmen took responsibility for the kidnapping, during which they breached the security cordon of one of the world’s most heavily guarded mining towns.
Such action “shows a new level of brazenness", the report said.
Paladin will allow the offer, of one of its shares for every 23.9 NGM shares held, to lapse on October 8. But it said it plans to keep the 22.5 per cent stake in NGM that it already owns.
It said it would monitor the state of security in Niger before deciding its future plans in the country.
VISIT MY OTHER SITE
@
No comments:
Post a Comment