AIM-listed LP Hill, a consolidator of businesses in the natural resources sector, has agreed to acquire Tranomaro Mineral Development for up to £1.1 million.

Tranomaro undertakes exploration projects for minerals such as uranium and thorium as well as precious metals such as gold. The company predominantly operates in Madagascar where it owns mining rights in an area known as the Marodambo Project.

Gerard Nealon, executive chairman of LP Hill, said: 'We believe that the global market outlook for uranium and thorium is attractive in the face of a growing supply deficit for uranium and an increasing political will to embrace nuclear energy to help meet global electricity demand which is forecast to double within the next 25 to 30 years.'

In the year ending June, LP Hill reported pre-tax profits of £247,860 after making a loss of £1.8 million last year.