David Erfle: Top 5 gold takeover targets

Canadian junior mining

As the precious metal miner sector continues to trade sideways this year, I would like to bring to your attention five development stage projects which I believe stand a very good chance of being acquired by a global miner within the next 12-18 months.

While being up over 23% this year, the Developers have been the best performing group in the sector, followed by the Royalty firms which are up 17%.  Exploration this decade is estimated to have only replaced one ounce for every three produced, making the best in class existing discoveries all the more desirable, as global miners must replace rapidly depleting reserves.

I believe holding a few Development-stage companies for a possible global miner take-over is the one of the best strategies in the gold space at this point in time. If chosen correctly, positioning oneself now in a developer that may be acquired later in the cycle could reap a very large return, or provide the investor with a much better cost basis on the company which eventually buys the stock.

Here are my top 5 picks to possibly be acquired before this new precious metal miner bull comes to an end:

Read the rest of David’s column at Kitco…spoiler alert, Motherlodetv.net client Victoria Gold is on the list

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