China moves to acquire Australian uranium firm

China's state-owned energy group CGNPC Uranium Resources Co Ltd (URC) is eyeing a stake of upto 70 per cent in Perth-based uranium explorer Energy Metals Ltd with a bid that values the company at $119.46 million.

The proportional takeover offer of $1.02 a share is being made through a subsidiary China Uranium Development Co Ltd (CUD) and has receive the unanimous support of Energy Metals directors.

The company's stock last traded at 86 cents a share after a trading halt on 27 August. The offer price represents a 60 per cent premium to the stock's three-month volume weighted average price p to 26 August.

"The Energy Metals board believes that CGNPC's financial resources, technical expertise and strategic intent to develop its uranium resource portfolio, will greatly assist Energy Metals in its transition from explorer to developer and producer," chairman Oscar Aamodt said in a statement on Tuesday.

Under the agreement CUD will also underwrite a one-for-nine rights issue by Energy Metals at 90 cents a share. This will follow the successful completion of the proportional takeover bid to raise about $11.7 million.

The funds will go towards expediting Energy Metal's 53.7 per cent Bigrlyi project near Alice Springs in the Northern Territory.