THE Northern Territory Government is negotiating out of court with a Perth-based developer who pegged a midnight claim on a billion dollar uranium site, a court has heard.

Norm McCleary sought to outfox at least six global mining corporations when he hammered his pegs into the ground a second after midnight on December 7, 2006.

Crown reservations at the Angela and Pamela Uranium sites, 25km south of Alice Springs and valued at over $2 billion, ended at 12am.

The NT government contested McCleary's claim that his stake should take priority because it came hours before a flood of emailed applications.

But in February last year, the NT Supreme Court dismissed McCleary's case, saying he had sought to exploit ``a loophole in the scheme''.

He lost his final legal bid last October.

Now he and his company McCleary Investments have been charged with a total of 56 counts of applying for a mineral claim without obtaining the approval of the NT mining warden.

In the Darwin Magistrates Court today, McCleary's lawyer Peter Maley said there had been discussions with the NT Government.

``There are negotiations on foot,'' he said.

``There is a high likelihood that this matter is going to be resolved.''

But he indicated that McCleary would fight the charges if negotiations failed and Magistrate Greg Cavanagh set down the matter for a contest mention July 30.

The ensuing legal battle for the rights to the deposits prevented the NT Government from awarding an exploration licence to any of the 37 companies who applied.

But in February this year, Cameco of Canada and Paladin Resources were approved the rights to explore.

Their application will now progress through the usual administrative procedures under the Commonwealth Mining Act, which could take up to six years.