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.

Here we have a good example to gauge what might happen in a buyout. Again all calculations are rounded, but with Tyhee's 1.85 million ounces of M&I and a $28 million market cap, Tyhee's gold is being valued at $15 per ounce in the ground.

So if a buyout were to occur as per the Canplats example, we might expect a similar resource valuation. That would be a 350% increase from today's share price, or roughly 68 cents per share. Not shabby for anyone buying at 15 cents... but surely not the endgame we have in mind here, right?

Here we have a good recent example to give us some realistic numbers to crunch. Personally, I would love for this gold to be mined at $300-400 per ounce and sold for $1500-2000 per ounce in the next few years, as opposed to being sold for $68 today like Canplats' gold.

Thoughts?

Hysteria