SR. companies often take over mid cap and jr. mainly because they have decent projects and often are neglated and their share price drifts lower.

it costs so much and often takes so long that it is just easier to buy future production. going forward do not believe the sr. gold companies are worth their multiple (most of them) and they will spend more money just to maintain production.

not sure I agree with the amount that is implied on the takeover.

Placer Dome was a company with great assets, however management was not that strong and the shareholders suffered, so Barrick made a good deal for themselves and the shareholders finally got relief. same goes for lac minerals.

Inco, and Falconbridge, should have merged together, Inco should have made the deal for BAM interest, would have hired someone to phone them every day. both companies (owned both, not enough) were sold for far, far, far to little. we know this since both purchases paid for themselves in 2.5 years or less. at the time you think it is a decent offer, but truth be told you cannot replace a Inco or Falconbridge, ever. they went cheap how many other transactions have a 2-3 year payoff. often great resource companies are undervalued by the market.

though increased demand from the emerging markets is one reason for the higher prices, the main reason is that there was so little exploration. during the late 90s who wanted in invest and fund a mine. there was no very little development.

also for every Quebec and Nevada there are many places you cannot look for minerals, actually most of the states and provinces do not want any exploration and mining.

thanks
selkirk