Wave of Acquisition continues

Goldcorp (NYSE : GG, TSX : G ) adds to the wave of mining and advanced mine project buyout this week with the purchase of Gold Eagle (TSX: GEA) for $1.5 billion. It's another undervalued player and the cash-rich major producers are certainly shopping for quality projects that have just been neglected by the market.

VANCOUVER, July 31 /CNW/ - Goldcorp Inc. ("Goldcorp") (NYSE:GG, TSX:G)

and Gold Eagle Mines Ltd. ("Gold Eagle") (TSX:GEA) today announced an
agreement whereby Goldcorp will acquire, through a friendly plan of
arrangement, all outstanding shares of Gold Eagle.
   Gold Eagle's principal asset is the world class Bruce Channel gold
discovery which is situated along the prolific Red Lake Trend, adjacent to
Goldcorp's Red Lake gold mine and immediately southwest of Goldcorp's
past-producing Cochenour-Willans Mine. This transaction will enable Goldcorp
to capitalize on its extensive exploration and operations expertise in the Red
Lake district and its considerable human resources and related infrastructure.
   "This transaction secures for Goldcorp full control of 8 kilometres of
strike length in the heart of the world's richest high grade gold district,"
said Kevin McArthur, Goldcorp's President and Chief Executive Officer. "Nearly
200 drill holes have defined an impressive gold deposit at Bruce Channel, with
potential for additional expansion over time. Development of this
strategically important zone can now move forward with our adjoining assets as
a single, comprehensive project, sharing mine infrastructure, ore processing
facilities and human talent with Red Lake, thus minimizing capital and
operating costs and maximizing long-term shareholder value. Red Lake mine has
operated for over 50 years, and Goldcorp's continued district consolidation
efforts are designed to sustain this world-class operation for decades into
the future. We are the natural partner to develop the Bruce Channel project
with the geographic footprint preferred by our community."

It's no wonder too, as the gold prices stay at record highs above $900/ounce, gold mining majors are making more money than before (given cost stays at the same per ounce). What will they do with all this additional fund... invest in US dollars and the US which essentially is on a downhill of inflation and smokes-and-mirror economic figures (wasn't unemployment data optimistic yesterday? What changed in the last 24 hours?)