It looks like Peñoles is raising $530M in a bond issuance. Could they be cashing up for another run at MAG?

Did some math.

58,130,535 shares (fully diluted) at $8.18/share = $475.5M. Penoles owns ~ 20% already, so that leaves ~$380M. A 25% premium totoday's share price would cost them ~$475M.

So, $530M would represent anoffer at around a 40% premium to today's price, or around $11.45/share. Not good enough for me, but it might be good enough for the majority of long suffering shareholders.

Dow Jones Newswires

DJ Mexico's Penoles Sells $530 Million In Notes On Local Market

02 Sep2010 - 13:58

MEXICO CITY -(Dow Jones)- Mexican mining andmetals company Industrias Peñoles (PE&OLES.MX) sold $530 million infive-year and 10-year notes on the local market.

At an auction Wednesday, Penoles placed $400million in 10-year notes at a fixed rate of 5.15%, and $130 million in floating-rate notes at 178 basis points above Libor, according to filings withthe Mexican stock exchange.

Penoles is the parent company ofLondon-listed Fresnillo PLC (FRES.LN), the world's biggest primary silverproducer.