PDAC 2016 Top Pick Soars on Takeover Offer

Goldcorp Inc. (TSE:G) announces C$520 million all-stock deal to acquire Kaminak Gold Corporation (CVE:KAM)

SmallCapPower | May 13, 2016: A rising gold price has lifted the stock prices of many gold-related equities so far in 2016. This has provided a greater opportunity for gold producers to use their stock as currency to make acquisitions, such as the most recent one involving Goldcorp and one of our top stocks to watch from PDAC 2016.

Kaminak Gold Corporation (CVE:KAM) shares surged 26% to $2.50 on May 12, 2016, after the gold project developer announced that it has agreed to be acquired by Goldcorp Inc. (TSE:G) in an all-stock transaction valued at approximately C$520 million. The shareholders of this gold penny stock will receive 0.10896 common shares of Goldcorp for each Kaminak share held.

SmallCapPower featured Kaminak Gold as a Top Pick at PDAC 2016

SmallCapPower featured Kaminak Gold as a Top Pick at PDAC 2016.

Its Coffee gold project in the Yukon was the talk of more than a few experts/analysts during the past couple years. And, a January 2016 feasibility study confirmed its potential – estimated production of 184,000 ounces of gold per year over a 10-year mine life from heap leach operations. Requiring C$318 million of capital, this project could generate an NPV (5% discount) of C$295 million and an IRR of 27%, at a gold price of US$1,000 per ounce, and with All-In Sustaining Cash Costs of just US$550 per ounce. Analyst and newsletter writer John Kaiser, in an interview with BNN at PDAC 2016, said he thought Kaminak will get acquired “within a year.”

See our interview with Kaminak Chairman John Robins >>

And, discover more gold junior investing ideas by reading our Ubika Gold 20 reports >>

DISCLAIMER
The Content contained on this page (including any facts, views, opinions, recommendations, description of, or references to, products or securities) made available by SmallCapPower/Ubika Research is for information purposes only and is not tailored to the needs or circumstances of any particular person. Any mention of a particular security is merely a general discussion of the merits and risks associated there with and is not to be used or construed as an offer to sell, a solicitation of an offer to buy, or an endorsement, recommendation, or sponsorship of any entity or security by SmallCapPower/Ubika Research. The Reader should apply his/her own judgment in making any use of any Content, including, without limitation, the use of any information contained therein as the basis for any conclusions. The Reader bears responsibility for his/her own investment research and decisions. Before making any investment decision, it is strongly recommended that you seek outside advice from a qualified investment advisor. SmallCapPower/Ubika Research does not provide or guarantee any financial, legal, tax, or accounting advice or advice regarding the suitability, profitability, or potential value of any particular investment, security, or information source.