http://www.canplats.com/s/NewsReleases.asp?ReportID=372214&_Type=News-Releases&_Title=Goldcorp-To-Acquire-Canplats

Today Goldcorp announced they are buying Canplats Resources in a deal valued at roughly $238 million, or $3.60 per share. Just doing some back of the envelope calculations here: Canplats has roughly 3.5 million Measured & Indicated ounces. This means that Goldcorp is buying them for about $68 per ounce of M&I gold in the ground.

Kimber, with a market cap of roughly $41 million, and currently with 1.5 million ounces of M&I at Monterde, is being valued at $25 per ounce in the ground.

For Kimber, a buyout at today's going market rate based on the Canplats aquisition might represent a 170% increase in share price, or $1.75 per share. While this would certainly be nice compared to 65 cents, I believe it is way too low considering that gold is selling for $1,130 per ounce.

I believe that Puplava and the strong hands that control this company are not going to let Kimber be sold for anywhere near $68 per ounce. But, can we be sure? I open it up to the forum, as in the Canplats case here we have a very good current example to start running some mental comparisons and valuations.

Hysteria