Remember AUR.TO or AUR-TO (Aurelian ResourceS) from my post last month? Well turns out the mining ban (moratorium to be precise - essentially government's attempt to assesss if its' getting taken advantage of by foreign mining companies... my opinion of course!)
Well, from their 52-week low of $3.05 it jumped to $6.60 so far on the TSX.
For the record, they closed at $4.45 last evening.
http://finance.yahoo.com/q/hp?s=ARU.TO
The reason is quite simple... Kinross Gold Corp (KGC), one of my personal favorites, offered to buy out 100% of AUR.to's shares today.
http://www.nationalpost.com/rss/story.html?id=677044
Kinross makes friendly bid for Aurelian
Kinross Gold Corp., Canada's third-largest gold producer, said it has agreed to buy Aurelian Resources Inc. for $1.2-billion in stock, giving it control of Ecuador's largest gold deposit.
Kinross, based in Toronto, will issue 0.317 of its shares for each one of Aurelian's, the company said on Thursday in a statement. That's 48% higher than Aurelian's closing share price on Wednesday. Aurelian's directors have recommended shareholders accept the offer.
Kinross chief executive Tye Burt has overseen the development of new mines in the U.S., Brazil and Russia, which together will boost Kinross's output by more than a third to as much as 2.6 million ounces next year. The acquisition gives it control of the Fruta del Norte deposit in Ecuador, which contains 13.7 million ounces of gold and 22.4 million ounces of silver.
"This deposit will add significantly to our mineral resource base," Mr. Burt said in the statement. "We intend to pursue a focused strategy to further define the deposit, and believe that this combination can make an important contribution to our future."
Kinross will also buy 15 million new Aurelian shares for $4.75 each to help pay for Fruta del Norte's development. The purchase of that stock is not dependent on the acquisition offer succeeding, Kinross said.
Kinross Warrants
Aurelian shareholders will also receive 0.1429 of one warrant, with each warrant entitling them to buy a Kinross share for $32 within five years.
Aurelian rose 5 cents, or 1.1% to $4.45 on Wednesday in Toronto Stock Exchange trading, for a market value of $606.3 million. Kinross fell $1.80, or 8%, to $20.84.
Ecuador's government has banned all mining and exploration in the country since April 18, when it started drafting a new minerals law. Aurelian said later that month that it would halt all activity on the Fruta deposit until the government allows operations to resume.
_______What I like about the news is it's a sign of major corporations of the resource world still on the lookout for value investment choices and bottom fishing (John Kaiser, anyone?)
Things will be looking quite interesting when all the analysts and brokers come back from vacation in September for the juniors!
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