Urge To Merge: 6 Gold Juniors That Could Be Acquired Soon

Faced with a gold market slump that’s set to hit four years, many juniors have been forced to take extreme measures, which includes merging with other miners.

That being said, any one of the following six junior gold companies could be the next takeover target or even make an acquisition of its own.

Faced with a gold market slump that’s set to hit four years, many juniors have been forced to take extreme measures. This includes merging with other miners to save on costs as well as avoiding a dilutive financing, as seems to be the case with companies such as Soltoro Ltd. (TSXV: SOL), Newstrike Capital Inc. (TSXV: NES), and AuRico Gold Inc. (TSX: AUQ). That being said, any one of the following six junior gold companies could be the next takeover target or even make an acquisition of its own.

Timmins Gold Corp. (TSX: TMM): Timmins was already a profitable Mexico-focused gold miner before announcing the acquisition of Newstrike Capital in February 2015. Acquiring Newstrike’s Ana Paula project is expected increase Timmins Gold’s total Measured & Indicated gold resource by 75% along with a 34% jump in the gold grade. The combined company is also forecast to mine gold at all-in-sustaining cash costs of less than US$780 per ounce. Potential suitors for Timmins Gold include Goldcorp and the soon to be merged Alamos Gold-AuRico Gold.

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