Rumour's! Rumour's! Lots of action taking place in the mining sector these days. With a rising gold price environment, buyers are looking for deals that would increase their ore reserves to replace their depleting assets. Last year, the Chinese were actively pursuing IMG as an acquisition. Is that door still open?
This would be the ideal time for IMG to unload their West African mining assets and return to Canada. The Essakane operating mine in Burkina Faso would certainly appeal to the Chinese. As well, the high grade exploration project - Boto Gold in Senegal could be an attractive part of the package.
With the proceeds of the sale, IMG could focus on the rapid development of their huge high grade ore project - Nelligan, which is located in one of the best mining jurisdictions in the world- Quebec. And recently, they have locked-in the Nelligan corridor! As well, they could fast track, the development of the Cote Gold project in Ontario.
These Chinese mining companies have a impressive track record of successfully acquiring and operating gold mines. It would be a win - win deal.
The IMG Board of Directors must be aware that in the mining business, a mining company must increase its ore reserves in order to survive!