Rising prices trigger 2010 gold rush
Rising prices trigger 2010 gold rush
Sept 3 (Reuters) – Canada’s Goldcorp Inc (G.TO) agreed to buy Argentina-focused gold miner Andean Resources Ltd (AND.TO) for C$3.6 billion ($3.4 billion), trumping a rival bid from Eldorado Gold Corp (ELD.TO) (EAU.AX)
The soaring price of gold XAU= has triggered increased M&A activity in the sector. Gold hit a record of almost $1,265 an ounce in June and averaged close to $1,200 in the second quarter — up about 8 percent from the previous quarter and nearly 30 percent above year-earlier levels.
Following are some of the big gold deals this year:
* In May, Newcrest Mining Ltd (NCM.AX), Australia’s most valuable gold miner, agreed to buy rival Lihir Gold after increasing its bid to $8.4 billion, creating the world’s 4th-largest listed gold miner with assets from Australia and Papua New Guinea to Africa.
* Gold miner Kinross Gold Corp (K.TO) said in August it would buy the 91 percent of Red Back Mining Inc (RBI.TO) it didn’t already own for around $7 billion.
* Eldorado said in August it was buying Sino Gold Mining Ltd SGX.AX for C$2 billion in an all-share deal that will more than double the size of its gold production in China.
* Eldorado in May agreed to acquire gold exploration company Brazauro Resources Corp (BZO.V) in an all-stock deal worth about C$122 million to expand its asset base in Brazil.
* Fronteer Gold Inc (FRG.TO) agreed to buy gold and silver exploration company AuEx Ventures Inc (XAU.TO) for about C$238.2 million to get full control of the Long Canyon gold exploration project in Nevada.
* Apollo Gold Corp (APG.TO) agreed to buy Linear Gold Corp (LRR.TO) in an all-stock deal worth about C$102 million.
* In August, Canadian miner Gold Hawk Resources Inc (GHK.V) said it planned to buy copper miner Oracle Ridge for C$17.5 million) to enter Arizona, one of the leading copper producing states in the United States.
* Russian steelmaker Severstal (CHMF.MM) said in July it raised its stake in Canada’s Crew Gold (CRU.TO) to above 36 percent.
* Canada’s Secova Metals Corp (SEK.V) said in July it signed a memorandum of understanding with a private group to buy a 90 percent stake in the Sergeevske Gold Deposit in Ukraine for about $15 million.
* U.S.-based Paramount Gold and Silver Corp (PZG.TO)(PZG.A) said in June it agreed to buy Canada’s X-Cal Resources (XCL.TO) to gain a foothold in the Nevada gold district. ($1=1.052 Canadian Dollar)
