http://business.financialpost.com/2010/11/30/consolidated-thompson-poised-for-ma/

With US$230-million in the bank from a recently-completed convertible debt deal, analysts expect Consolidated Thompson Iron Mines Ltd. to look at potential acquisitions.

The deal “provides Consolidated Thompson with enough financial firepower to potentially acquire a number of the junior publicly-listed Labrador Trough companies outright for cash, or one of the larger development companies for a mix of cash and stock,” Raymond James analyst Adam Low wrote in a note.

The company is also expected to use the proceeds to develop its Lamelee-Peppler iron ore project in the Labrador Trough. John Redstone of Desjardins Securities is assuming that the 302 million tonnes of resources at the project can be converted into reserves and support a 20-year mine life.

The financing was not without controversy, as chief executive Richard Quesnel was found guilty of insider trading right in the middle of it. However, BMO Capital Markets analyst Tony Robson pointed out that he is expected to continue an “active advisory role” with Consolidated Thompson while he appeals the decision.

All three analysts rate the stock a “buy” or “outperform,” with price targets of either $13.00 a share or $14.00 a share.