For the Fundamentalists out there I have copied a post from dajarra4 post# 4322967, for your information.
PURE SPECULATION:Robin Bromby | August 03, 2009 Article from: The Australian.
WHAT does John Borshoff have in mind regarding NGM Resources (NGM)? The boss at uranium producer Paladin Energy (PDN) certainly has shown an acquisitive streak, his company now owning 19.29 per cent of Deep Yellow (DYL) and 81.9 per cent of Summit Resources (SMM), the explorer with by far the best uranium inventory in Queensland. Moreover, it has 42.1 per cent of the exciting Bigrlyi deposit in the Northern Territory and a 50-50 joint venture, also in the NT, with global uranium giant Cameco.
In March, Paladin invested $500,000 into cash-strapped NGM, giving Borshoff's company a 14.3 per cent stake. Then he plonked another $300,000 on to NGM's table in May to move that stake up to 16.7 per cent. NGM has some strategic ground in Niger, now the world's fourth largest uranium producer and expected to be No2 by 2012.
Two-thirds of Niger lies within the Sahara Desert, but it has great uranium riches. The French government's Areva already operates two uranium mines there and in 2012 will open the Imouraren mine, which will be the world's biggest uranium operation. Next year the China National Uranium Corp will bring the Somina mine into production.
NGM has three concessions in Niger. The Australian company has drilled 27 holes, most of them hitting uranium mineralisation. Its commitment to Paladin, in return for the money, was to do 1500m of drilling.
That commitment has now been completed and the deal with Paladin will expire on September 18. What happens then is probably known only to the people at Paladin. That company has already done well out of its investment, buying in when NGM stock was at 1.4c compared with the 15.5c close on Friday.
The junior's bank balance was down to $483,000 on June 30 and chief executive Robert Kirtlan hasn't taken any salary since September -- NGM spent just $6000 on administration in the June quarter -- but he doesn't feel hard done by, given that he has 11 million shares in the joint. He, like the other shareholders, will be waiting to see what happens after that agreement with Paladin expires next month.
