6 Potential Mining & Exploration Takeover Targets

Posted by Peter Grandich

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With gold and silver poised to resume their secular bull market and the horrific bear market in mining and exploration stocks apparently now behind us, I anticipate a “marked” increase in mergers and acquisitions (M&A) in the mining and exploration area.

Six companies appear excellent targets, two of whom are Grandich clients and I own a “ton” of shares in:

  • Geologix Explorations – is a Canadian mineral exploration company focused on acquiring, exploring, and developing promising mineral resource opportunities. The Company’s primary focus is its 100% owned Tepal Copper-Gold Porphyry Project in Michoacán State, Mexico. The Company recently completed a Preliminary Feasibility Study (“PFS”) at Tepal, and is currently working to move the project towards a Bankable Feasibility Study (“BFS”) and production.  Management has hinted of alternatives to general equity financing’s and when you look at some of their board members, you could speculate they may be of great assistance in this matter. Stock is just too cheap and vulnerable to takeover.
  • Kinross Gold – the world’s seventh-largest gold miner, owns some huge, largely unexploited assets spread across four continents, making it an appealing target for bigger players who are always on the hunt for deposits to replenish their reserves.
  • Newcrest Mining – Its 40 years of gold reserves exceeding that of any global peer makes Australia’s largest producer  a target. Newmont Mining has been a rumored potential suitor.
  • Sunridge Gold– I’ve heard from more than one pass reliable source that the Chinese have greatly increased their interest in mining worldwide and in particular Eritrea. When pressed, SGC management clams up except to say numerous companies worldwide are looking at them and have signed confidentially agreements. I’m extremely bias but I think this is one junior to own ASAP for speculators.
  • Teranga Gold – A full takeover of Oromin Explorations should occur before year-end. Once complete and a deal done with OLE’s former joint-venture partners, I think TGZ itself comes into play.
  • Yamana Gold – A history of growth, relative low-cost producer and a much lower market valuation makes it a target as well IMHO.