NGM to acquire Indo Energy for Niger uranium exploration

South Perth-based gold explorer NGM Resources Ltd will acquire Global MinEx Ventures Ltd's Niger-focused subsidiary Indo Energy Ltd in a cash and scrip issue.

NGM will pay Global Minex $100,000 for an option to acquire Indo within a 12 month period, subject to the Niger government granting at least three of the six uranium concessions held by Indo.

Should that occur, NGM will pay $100,000 per concession - minus the option fee if over four are granted - as well as issuing 30 million NGM shares and 20 million options exerciseable at $1 each. Global Minex would acquire 70 per cent of the shares issued, with the other 30 per cent going to Rockface Consultancy.

New terms are to be negotiated should less than three concessions be granted.

Upon any decision to mine, NGM will issue a further 20 million shares and pay around $12.8 million to be distributed on the same 70 per cent-30 per cent ratio.

NGM managing director Russell Penney said the deal would enable NGM to embark on a vigorous uranium exploration program.