Takeover talk circles handful of Canadian juniors

"The increasing valuation gap between the senior and intermediate producers and the junior explorers/developers suggests to us that M&A activity will likely heat up going into 2009," Dundee Securities said in a note to clients.

Analysts have fingered a handful of juniors that are likely takeover candidates. Here is a list of some potential targets:

* Aquiline Resources (AQI.TO: Quote, Profile, Research, Stock Buzz) - The owner of Navidad silver project in Argentina needs to raise funds to finance immediate capital needs, analysts say. "If the company can continue to move toward development, potential acquirers may take an interest in its large, world-class silver project," Dundee Securities said in a note.

* Corriente Resources (CTQ.TO: Quote, Profile, Research, Stock Buzz) - Developing the big Panantza-San Carlos copper project in Ecuador, Corriente is looking for partners. The owner of the Mirador and Mirador Norte projects, has a "good probability of being taken over," Wellington West Capital Markets said in a report.

* Candente Resource (DNT.TO: Quote, Profile, Research, Stock Buzz) - Said in late September it was looking for a joint venture partner for its Canariaco copper, gold and silver project in Peru.

* Detour Gold (DGC.TO: Quote, Profile, Research, Stock Buzz) - The past-producing Detour Lake project has a good chance of being acquired by a senior producer in the coming year, Wellington West said. Buyers may have to go through PDX Resources (PLG.TO: Quote, Profile, Research, Stock Buzz) which holds a 42 percent stake in Detour.

* South American Silver (SAC.TO: Quote, Profile, Research, Stock Buzz) - "The size and scope of the Malku Khota project makes South American Silver Corp a takeover candidate by a major with cash or cash flow," said Wellington West.

Noront Resources (NOT.V: Quote, Profile, Research, Stock Buzz) - Owns a promising nickel, copper and platinum property at its Double Eagle property in northern Ontario. Complicated by a recently settled proxy battle.

* Osisko Mining (OSK.TO: Quote, Profile, Research, Stock Buzz) - Developing the Malartic gold project in Quebec with an estimated 8.4 million ounces. (Reporting by Susan Taylor; editing by Rob Wilson)