Shares of Mercator Minerals(TSX: T.ML, Stock Forum) jumped 10.6% to $2.81 with more than 10 million shares traded Wednesday, as posters weighed in on takeover rumours involving the company.
While Mercator released no news on Wednesday, an article from the National Post mentioned the company, as it noted that molybdenum producer Thompson Creek Metals (TSX: T.TCM, Stock Forum) announced a $217 million bought-deal financing on Tuesday worth $217-million with plans to use the cash for development and expansion of existing mining assets, exploration, acquisitions, working capital, and general corporate purposes.
“Good matches for the company include Mercator Minerals or a team-up with Quadra Mining on its large Sierra Gorda project in Chile,” said the article.
On the Mercator Bullboard Wednesday, Birpind1 said: “TCM has stated they are looking for an acquisition and looking for a company with copper production.”
And, intowin said: “Strong rumor today of a TCM takeover. I'll sit and enjoy the ride”
In a post entitled “Merger Talk”, bjorn3d2b posted information from the National Post article, to which knowsnothing613 replied: “whoa. no wonder the sp spiked, and is going higher. I wish I would have known this before putting in my short order. Oh well, I covered. fyi. I also think MOL might be a TCM target due to its Moly/Copper reserves, and proximity to Asian markets. Though it still requires about ~200 million in Capex, and has 150million of debt due in October. we will see how it all plays out.”
Meanwhile, early Wednesday on the Thompson Creek Metals Bullboard, bmann025 said: “taking over ML would make a lot of sense. at current copper prices and with 500 mio $ they can do what ML currently can't do : hedge the copper production and let ML earnings pay back the acquisition price in just a couple of years and then profit for decades from ML's cash machine.”
