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To: sageyrain who wrote (62441)	9/29/2006 10:49:47 PM
From: sageyrain	Respond to of 312878

yahoo.reuters.com Mining minnows merge to lure a big-league catch Fri Sep 29, 2006 1:03pm ET165 Market View SSR (Southern Star Resources Inc ) Last: $4.59 Change: -0.20 (-4.18%) Revenue (ttm): $0.0M EPS: -0.03 Market Cap: $199.56M Time: 3:59pm ET Stock Details Company Profile Analyst Research Company News: Mining minnows merge to lure a big-league catch UPDATE 1-Exall, Southern Star plan C$400 million merger Exall Resources, Southern Star to join forces More Company News... Email This Article \| Print This Article \| Reprints [-] Text [+] (In U.S. dollars unless noted) By Susan Taylor OTTAWA, Sept 29 (Reuters) - Small Canadian mining companies are rushing to groom themselves to attract big-league suitors, experts say, a trend underscored by a wave of consolidation among junior explorers and producers. Flush with cash and confidence spawned by robust commodity prices, the miners want to capitalize on vibrant investor interest. Mergers are a way for the miners to bulk themselves up into mid-tier producers, ready to attract the voracious appetites of the world's mining titans. "You saw in the last year and a half, all the bigger companies get eaten by the (even) bigger companies. And there are no, now, middle-tier gold producers," said Prospectors & Developers Association of Canada director Steve Vaughan. "You find that the smaller gold producers are, as fast as they can, accumulating smaller companies to get in the mid tier so they can be eaten by the bigger ones." This week, for example, marked the marriage of Exall Resources (EXL.TO: Quote, Profile, Research) with Southern Star Resources (SSR.TO: Quote, Profile, Research) to form a new C$400 million ($357 million) gold explorer called Gold Eagle Mines. "You're beginning to see the seniors now dip into the intermediate pool, the small-scale producers. So the juniors, in preparation for the next wave coming down, have to get themselves into position. It's not necessarily a bad thing to be a takeover target," said Darin Wagner, president of gold explorer West Timmins Mining (WTM.TO: Quote, Profile, Research). Continued...