Takeover Speculation - Resource Investor - Oct/07

Bob Bishop, Editor of Gold Mining Stock Report, speculated that Crystallex could be in sights of Goldcorp-Glamis.

In January, Crystallex announced a private placement financing in the amount of $31.3 million to an unnamed investor, who bought just under 5% of the company.

Goldcorp [NYSE:GG; TSX:G] has never confirmed such an investment, but “it has been disclosed that Goldcorp made an investment of $31 million at that time…no other major mining company made a similar investment during the period,” said Bishop.

According to Bishop, Glamis Gold [NYSE:GLG; TSX:GLG] has done extensive due diligence at Las Cristinas, which could mean a “combined Goldcorp and Glamis would be much better positioned to take the whole thing, not just have a seat at the table when Crystallex is carved up.”

But Bishop concluded that Goldcorp and Glamis are unlikely to make a move until these two are one and Crystallex’s permit is in hand.

And if Crystallex’s permit is in hand, it stands to reason that Gold Reserve’s permit can’t be too far behind.

Share Price Activity