Merger mania continued with Silvercorp Metals offering up 0.5 of its shares for each Klondex share. The hostile offer is valued and C$70 million and would give the base metal miner exposure to an advanced gold asset in Nevada.
Silvercorp closed down C$0.54 at C$3.82, while Klondex added C$0.58 to C$1.95.

Golden Predator Royalty & Development inked a deal to acquire up to a 70 per cent interest the past producing Brewery Creek project in the Yukon. Golden must spend C$4 million by the end of 2012 to earn a 51 per cent interest. Golden will have the option to acquire an additional 14 per cent interest in the project by spending additional C$1-million and completing a preliminary economic assessment by the end of 2013. An additional 10 per cent can be reached by Golden by completing an additional C$1 million in exploration expenditures and delivering a bankable feasibility study by the end of 2014. Project owner, Alexco Resources (AMEX:AXU) retains a one time right to buy back the additional 10 per cent interest by paying to Golden Predator 2.5 times all exploration and development expenditures incurred by Golden Predator in excess of C$4 million. Golden ended the day unchanged at C$0.44, while Alexco fell C$0.19 to close at C$2.35.

The deal flow is continuing at a torrid pace in the junior end of the equity market spectrum. When will the major step into the fray and take a run at a junior? We shall see what Tuesday trading has in store.

Source: Resource Stock Roundup:Tuesday, June 09th, 2009