Areva, Paladin Among Possible Uramin Inc. Buyers

Uramin Inc. (UAMNF.PK) could be the next uranium play to be snatched up after announcing it was in talks with an unnamed party to sell the company.

Investors reacted positively to the news, driving up shares in the company more than 11% on heavy trading Monday.

Uramin, which explores for uranium in Africa, declined comment on the discussions, only to say "no assurance can be given that the negotiations will be successful," according to a Bloomberg report.

One possible bidder for Uramin is Areva Resources, a subsidiary of the Areva Group (ARVCF.PK). Among the parent company's assets in Africa, are two uranium producing mines in Niger, the same geographic area where Uramin recently signed onto a joint venture with Northwestern Mineral Ventures Inc. to advance a total of eight highly prospective uranium concessions.

Another possibility is Paladin Resources Ltd. (PALAF.PK), whose Langer Heinrich project in Namibia has similar calcrete deposits to those being explored by Uramin.

Consolidation of the uranium industry has been picking up steam lately and last week SXR Uranium One Inc. snatched up Energy Metals Corp., for $1.6-billion. The two had been in exclusive talks for two weeks before announcing the deal.