Globe says Goldcorp may consider a move on Rubicon

Goldcorp Inc (2) (C:G)
Shares Issued 807,607,434
Last Close 8/16/2011 $49.74
Wednesday August 17 2011 - In the News

Also Rubicon Minerals Corp (C:RMX) In the News
Also Agnico-Eagle Mines Ltd (C:AEM) In the News

The Financial Post reports in its Wednesday, Aug. 17, edition that Middlefield Capital manager Dennis da Silva says M&A activity could be sparked by what looks like to be a creeping takeover. The Globe's Shirley Won writes that Agnico-Eagle Mines last month agreed to buy a 9.2-per-cent interest in Rubicon Minerals in a $70-million private placement. Rubicon owns the Phoenix gold project in Red Lake, Ont., a prolific gold-producing area that is home to Goldcorp's Red Lake mine. Mr. da Silva says, Goldcorp "may feel threatened by this strategic investment" in their backyard, and consider making a bid. Goldcorp acquired Gold Eagle Mines in 2008 shortly after Agnico-Eagle bought a 5-per-cent interest in that junior miner. Gold Eagle had an exploration project next to Goldcorp's Red Lake operation. If Goldcorp does make a move for Rubicon, it will likely happen within the next year before the company starts trying to build its own mine, suggests Mr. da Silva. Sprott manager Charles Oliver believes there could be a boom in takeovers of junior gold miners as producers choose to grow production through acquisition rather than shoulder the costs of building big new mines.