by John Rubino
Last week, US-based miner Corvus Gold got an unsolicited, all-cash buyout offer from industry giant AngloGold Ashanti. The offer was about 20% higher than Corvus’ prior-day price but barely above its year-to-date high. In other words, reasonable but not aggressive. So it remains to be seen whether Corvus shareholders will accept or hold out for bigger gains down the road.
Either way, the days of such low-profile, barely above the current market price buyouts appear to be ending. Future acquisitions will be a lot more costly — which is to say future profits for investors in the best junior gold miners will be a lot higher. Here’s how Sprott Asset Management’s Rick Rule explained it in a recent interview: