buying an $11.30 share for $10.40

Barring a higher offer, LRC has agreed to be taken over by KCN for one KCN share for every 520 LRC shares.

That means buying 520,000 LRC shares at 2 cents for $10,400 is equivalent to purchasing 1,000 KCN shares. But KCN is trading around $11.30 which means 1,000 KCN shares would cost $11,300.

So purchasing LRC is a cheap way to get into Australia's second biggest gold miner, with the added sweetener of possibly another bidder and KCN raising its bid for LRC.