PC Gold Inc Ord PCGLF

Interesting buyout for Underworld

[rockport1]

If you haven't seen already, Kinross made a buyout offer for Underworld Resources (UW-TSX) today. This values UW at about $110 million or about $75 per MII ounce. I bring this up because with about 1 million oz Inferred and another 400,000 Indicated (in just over 3 g/t), it is very similar to PC Gold's 1.3 million oz historic resources.
It is somewhat surprising because the Underworld resource is so small; one would typically expect the seniors to start kicking the tires of juniors only after they have defined 3-5 million oz deposits. Obviously Kinross is expecting to define additional resources, but it does imply that many smaller explorers such as PC Gold may be in play as takeover candidates at earlier stages than in the past, as long as they demonstrate potential for expansion.
I would think that this Kinross offer might begin to really focus attention on the smaller juniors.  As a former producing property with existing infrastructure and lots of exploration potential, PC Gold's value is likely to be reflected in share appreciation as the market begins to take more notice. It looks like the junior takeover party is just getting started! The flood gates may be just starting to open.
P.S. Off topic: Can someone explain how to create a paragraph break (i.e. blank line) when posting. The system always bunches my paragraphs together and doesn't allow me to insert any blank lines. Thanks for any help.