paladin move sparks surge

URANIUM stocks soared yesterday amid strong speculation that a bidding war was set to erupt for control of Perth-based junior explorer Energy Metals.

The country's third-largest uranium miner, Paladin Energy, was placed in a trading halt before the market opened after the company's managing director John Borshoff announced a $450 million capital raising to fund acquisitions and mine expansions.

Energy Metals board announced on Monday that it had entered a deal to sell 70 per cent of the company to China Guangdong Nuclear Corporation for about $80 million.

But the Paladin disclosure sparked a rally in Energy Metals' share price and a host of other uranium explorers which are now being eyed by Chinese and Japanese nuclear power companies.

Energy Metals soared as much as 20 per cent in early trading, but closed up 12 or 12.5 per cent at $1.08.