This may reignite some interest in the juniors.
Most of the junior companies are valued substantially less than their large and mid-cap piers. This is one way to unlock some value.
Metallica Resources, New Gold and Peak Gold Announce Proposed US$1.6 Billion Business Combination to Create a New Intermediate Gold Company
METALLICA RESOURCES INC
MR 3/31/2008 6:59:45 AM
VANCOUVER, BRITISH COLUMBIA, Mar 31, 2008 (MARKET WIRE via COMTEX News Network) -- Metallica Resources Inc. ("Metallica Resources") (TSX: MR) (AMEX: MRB), New Gold Inc. ("New Gold") (TSX: NGD) (AMEX: NGD), and Peak Gold Ltd. ("Peak Gold") (TSX VENTURE: PIK) are pleased to announce they have signed a letter agreement to complete a business combination (the "Transaction"), creating a new globally diversified intermediate gold company with a market capitalization of approximately US$1.6 billion. The combined company, to be called New Gold Inc., will own three operating gold mines in Australia, Brazil and Mexico, and have a strong balance sheet to fund development stage projects in Canada and Chile, including the New Afton mine, which is scheduled to commence production in late 2009. All of the combined company's mines are located within attractive mining jurisdictions. All dollar figures are in Canadian dollars, unless otherwise stated.
