As I see it:- * It is phenomenal that Goldcorp should be about to successfully bid for 2 advanced miners all within just a span of a month. Have not seen such aggresssive play from them before. Canplats started with an offer of around $230m and finished around $270m. Goldcorp must be trying to secure their future flow of gold and be at the head of the pack as far as takeovers are concerned. * This is still early days. Premiums for takeover will rise. Reason? For every mine Goldcorp won, there is a loser. The pressure to secure an advanced explorer will surely intensify. * What about Kings? Kings is expecting the prefeasibility report on San Anton to be released any time now. This is going to be the first independent report--something the big miners who are public listed can confidently run their rulers over. Goldcorp has about 35% in San Anton and the rest is held by SNN in TSX where Kings has about 71% interest. Whoever buy over SNN will control San Anton. Will Goldcorp want another miner to have the controlling stake? Yes, in the past Goldcorp, wasn't very keen on San Anton. Kings worked her way up to become majority owner of a lease that belonged originally to Silver Wheaton (who was taken over by Goldcorp). Goldccorp may not like to play the role of a junior partner then. Things have changed. Look at the comments by Goldcorp CEO in my recent post. They are looking at every project from a different perspective. Even a mine with more copper than gold is alright for them now. Why this desperation? Maybe there are few porphry mines left in this world. It is hard to find mines with more than 1m oz of gold. Personally, I believe many big predator miners are looking thru Kings. They are waiting for the first independent report to set their offers into motion. Will find out soon.
KMN Price at posting:
18.2¢ Sentiment: Buy Disclosure: Held
