Loading ...NEW YORK , May 16, 2016 /CNW/ – Prices for gold have rallied on increased demand for safe haven investments from equity market turmoil, and these unusual market conditions have increased expectations for more mergers and acquisition deals within the gold market. Tahoe Resources Inc. (THO.TO), Kaminak Gold Corporation (KAM.V), Goldcorp Inc. (TSX:G.TO), Market Vectors Junior Gold Miners ETF (GDXJ), Brazil Resources Inc. (BRI.V)
Earlier in February Tahoe Resources Inc. agreed to acquire Toronto -based miner Lake Shore Gold Corp. in a $552 million all-share deal. Then just last week Kaminak Gold Corporation announced that the company will be acquired by Goldcorp Inc. for a deal approximately $520million Canadian.
Goldcorp’s strategy of using the infrastructure developed by smaller exploration companies to then identify and develop their mining projects. For example, Kaminak’s ‘The Coffee Gold’ project is located in a suitable territory easily accessible from Dawson City, Yukon Territory in Canada , which is located very close to the Alaskan border, and provides Goldcorp with high quality development project at low sustaining costs.
Large Gold companies with a strong balance sheet and cash can afford to buy assets that strengthen their production portfolios. The fact that the gold sector market share will remain diversified only supports this strategy. According to research by BMI, the top 10 gold producers account for only 25% of global output.
cont. http://finance.yahoo.com/news/major-gold-miners-target-junior-131700387.html