High River Gold Mines Ltd HRIVF

Detour - starting to be in T/Over articles

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Detour mentioned as 1 of 4 ideal takeover targets for Yamana, if Yamana decides to go down that route.

I can Goldcorp, Kinross and Barrick wanting Detour also, in addition to other large companies. Detour is located in safe country/province, huge resource base and growing, will have huge production ounces.....

I can see HRG's strategic investment in Detour being valued easily at $80M again, as it was not too long ago. This alone would represent about 80% of HRG's current overall company debt. That doesn't even include the $50M minimum that HRG will generate in free cash over the next 6 months that can go towards paying down debt. THERE IS NO WAY IN HELL THAT MANAGEMENT LOOKING OUT FOR THE BEST INTERESTS OF ALL SHAREHOLDERS WOULD CONVERT HRG's RELATIVELY SMALL REMAINING DEBT TO SHARES OR RECOMMEND A $.22 SHARE PRICE TAKEOVER, IMO.

Again, HIGHWAY ROBBERY, IMO


Here is the article:

Yamana's warchest and potential takeover targets

Posted: June 11, 2009, 12:24 PM by Jonathan Ratner

Mining, Takeovers, gold, Yamana Gold, M&AYamana Gold Inc. expects its sale of three mines for US$200-million will allow the company to better focus on its core assets and operating jurisdictions. It also plans to advance its high-returning development-stage projects. “In the end, the plan is aimed at lowering cash operating costs, increasing margins, reserves, production and cash flow per mine,” Wellington West analyst Steve Parsons told clients. But the senior gold producer has also built up a war chest of approximately $1-billion in cash and equivalents, undrawn credit and proceeds from mine sales. This has prompted the analyst to suggest Yamana may emerge as a “buyer of significance.”

Yamana operates six mines and has several development/expansion projects in progress in Brazil, Argentina and Chile. Its core operations include the high-grade El Penon gold-silver mine in Chile and the Chapada copper-gold mine in Brazil.

While the disposal of non-core operations will take a bite out of earnings and cash flow, with an acquisition looming, the negative impact may be short-lived, Mr. Parsons said.

He believes Yamana will look to add a larger-scale asset than those it sold. Those relatively near-term, intermediate producers with a long life in stable geopolicitical jurisdictions include Osisko Mining Corp., Detour Gold Corp., Jaguar Mining Inc. and Romarco Minerals Inc.

Jonathan Ratner