Yamana take-over of Extorre Resources
I been working diligently on research of 3 companies this weekend: MBIA, OceanaGold and Esperanza Resources. I haven’t anything to post yet on the 3, but I have bought decent positions in the latter two and am looking for an entry on MBIA.
I wanted to send out a quick update because of the news this morning that Yamana Gold entered into an arrangement to by Extorre Gold. I looked at Extorre over the past couple of weeks and decided to go with Esperanza, which I chose because of its lower capital expenditures and that, being in Mexico rather than Argentina, Esperanza has less political risk.
Nevertheless, the move by Yamana just points to how cheap many of these gold junior companies are trading. I expect there to be more of these sorts of transactions over the coming months, as majors pick up resources on the cheap.