Looks like Jim Sinclair mentioned this buyout (he is responding to Eric) and echoes exactly what I have said- 1MM ounces = $1B... AT THESE GOLD PRICES. What do you think happens for each $100 rise in the price of gold? Not only do profits go up but the mineable ounces goes up also as previously expensive ounces are now economical.

Eric,

It looks like what I had anticipated many years ago is occurring NOW!

The gold industry itself, the least knowledgeable of the gold price mechanism, has woken up to the fact that for every million ounces a junior has there is more than $1 billion in value less cost of production. The guys who dig gold out of the ground are nitwits when it comes to the price of their product. Did they not lose billions betting against themselves on short of gold OTC derivatives?

Regards,
Jim

Goldcorp to buy Andean Resources for $3.42B
CIGA Eric

Competition to acquire ounces in the ground will drive up the price of junior resource companies with good managements, properties, and locations. Fear of ownership will transition into fear of missing the next big move as merger and acquisitions, driven by lots a money chasing dwindling solid opportunities, will drive gold stocks higher in the coming months and years.

Canada’s Goldcorp Inc. said Friday it has agreed to buy Andean Resources Ltd. for about 3.6 billion Canadian dollars (US$3.42 billion), trumping a rival bid from Eldorado Gold Corp.

Source: finance.yahoo.com