Paladin Energy Ltd, the Uranium mining firm, has said that it is thinking of making a takeover bid to NGM Resources Ltd.

"Paladin advises that it is currently undertaking due diligence on NGM Resources Ltd and is negotiating with the board of NGM in terms of a potential takeover bid," Paladin disclosed on Monday.

"The board of Paladin has not yet made a decision on this matter."

NGM is minerals mining company that centers on the discovery of substantial nickel and uranium deposits.

NGM Resources has mining projects in Africa, one in Niger, and another in the island of Madagascar. The firm also has large projects in Queensland, Australia.

Niger is one of the biggest producers of uranium, ranking fourth in the world over all.

NGM Resources's market capitalization of is worth $16.78 million, while the market capitalization of Paladin Energy is at $2.59 billion.

In the previous week that passed, NGM Resoures has announced accomplishments of the company's drilling schemes in the Tim Mersoi basin at Niger, Africa. The latest find was made in the Carboniferous unit.

Robert Kirtlan, executive director of NGM, said, "This is our first substantial hit of mineralization in the Carboniferous. The Carboniferous tends to host the majority of deposits discovered in the Tim Mersoï basin and we have intersected uranium of up to 0.2% eU3O8 at depths less than 70 meters over an area 1.5 kilometers wide and open to the north.

NGM also announced that it has struck some good mineral sand iron ore deposits in Madagascar.

Trading of NGM shares were stopped since Monday, while Paladin Energy shares decreased by $3.57 at exactly 1043 AEST.