Mega Uranium Limited has $112 million set aside for uranium acquisitions, with Australian companies featuring close to the top of the list.

Having acquired two Australian companies (Hindmarsh Resources Limited and Redport Limited last year, director Tony Grey said “I consider that Australia is still the best place in the world for uranium exploration, particularly in the Pine Creek Geosyncline in the Northern Territory,” he told delegates at the Association of Mining and Exploration Companies conference in Perth.

As we know MGA is on a mission to become one of the worlds major players in the uranium-mining sector and they know how to do the business on the acquisition trail.

Mr Grey also highlighted Australia’s split political situation whereby Western Australia and Queensland still oppose the mining of uranium and that they could well miss out while the other states reap the benefit of mining uranium.
It will be interesting to watch this situation unfold and for what it is worth our money is on Queensland and Western Australia changing their stance in the near future. As we wrote back in July 2006 “My bet is that they won’t let politics get in the way of a good money spinning deal” in an article entitled ‘Mega Uranium: A Place in the sun’

Taking a quick look at the chart we can see that Mega has come back from a peak of $9.00 to trade close on $6.15 as we write. It is also getting close to its own 200DMA, which it hardly ever goes below.

Chart:

Is this a buying opportunity staring us in the face you ask? We think that it is and we will now watch closely for an entry point.