Hemisphere Gold, Inc. – HPGI – Stock Guru Profile
Any review of the gold mining industry is filled with past mergers, joint ventures, potential mergers, rumored mergers, postponed mergers, and denied mergers. The reason is that the fastest way to increase reserves is not through discovery but through acquisition.
Obviously, most of the easy gold discoveries in the world have been made — but that’s where Suriname comes in. This is fresh new gold discovery territory and the preliminary test results are very good.
Hemisphere Gold, Inc. has a strong exploration plan for their property in Suriname and the world’s great gold companies have an ever increasing need for gold acquisition. There is no question but the market exists for gold!
A recent Merrill Lynch review of mergers in the gold mining industry is staggering. Here is a review of the major mergers based on the need to replace gold reserves in the last few years.
Merrill Lynch Gold Mining Merger and Acquisition Review
In 2006, some 31 significant company, mine and development property transactions (versus 23 in 2005) were involved merger and acquisition activity in the global gold sector The total dollar value of global mergers and acquisitions was a record $19.3 billion, three times the total transaction value of 2003.
Mergers and acquisitions consisted of 12 transactions for gold companies and 14 for stand-alone projects in 2006. Gold mining companies are attracted to acquirers for the instantaneous cash flows, the report noted.
Merrill’s analysis indicates that recent acquisition prices for companies had been moving upward in line with rising gold prices. In 2006, the average acquisition price for companies was at a 0.6% premium to the prevailing gold price, compared with 17.8% and 33% discounts for mine-and development-project transactions in previous years.
In analyzing the current state of the gold bullion market, the report noted that physical buyers returned to the market after the gold price had fallen to $604/oz and that helped in the recovery.
“We believe that the rebound in the gold price bodes well for the metal’s medium-term prospects,” said the report. “While January is a historically weak period for bullion prices, (coming after the various holiday seasons and before the start of the Indian wedding season in March-April), we continue to believe that bullion should move up to the $650-$675/oz range by the April-May period.”
Source: Hemisphere Gold and Merrill Lynch
3504 35th Ave SW
Calgary, Alberta T3E IA5 Canada
IR Contact: Barry Reagh
Phone: (888) 548-8444
Email: ir@hemispheregold.com
Website: http://www.hemispheregold.com
About Hemisphere Gold Inc. is in the business of exploration and acquisition of gold properties in some of the world’s best gold districts. The Company’s objective is to take advantage of high-yielding untapped mineral producing properties through exploration and acquisition. The Company’s flagship property is in Suriname, a democratic country which has had mining operations since the 1700s. Suriname is an emerging major gold producer with international companies showing interest. Hemisphere is committed to maintaining environmental stewardship, occupational safety and corporate responsibility.
This release may contain forward-looking statements which are pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that actual results may differ materially and all forward-looking statements involve risks and uncertainties including, without limitation, risks associated with the Company’s financial condition and prospects, risks associated with mining exploration, risks of governmental legislation and regulation, risks associated with technological changes, risks associated with dependence on third parties, risks relating to international operations, delays in testing and evaluation of products and risks associated with competition.
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Pentony Enterprises LLC, the publisher of this website, was compensated 12,000 U.S. dollars by Haynes Capital Corp. Slovakia s.r.o. (hereinafter “Haynes”) for preparing and hosting the information contained on this website. Ocean Eclipse Ltda. (hereinafter “Ocean”), a corporation organized under the laws of Costa Rica paid Haynes 60,000 U.S. dollars to produce and distribute a financial newsletter and to publicize the gold industry and Hemisphere Gold Inc. (”HPGI”), a Nevada corporation, using one or more websites. Haynes has not received any information indicating that Ocean owns any shares of HPGI. In addition, on March 29, 2007, Haynes entered into a contract with HPGI under which Haynes shall perform media relations and awareness consulting services for HPGI and HPGI shall pay Haynes 3,000 U.s. dollars per month. The term of this contract is 3 months and shall be automatically extended for 1 month terms until terminated by either party.
Haynes does not own any common shares of HPGI and does not intend to purchase or sell any common shares of HPGI in the immediate period following the publication of information pertaining to HPGI on this website. However, because Haynes received compensation for assisting HPGI engage in media relations and awareness marketing, and HPGI has in turn received compensation from Haynes, there is an inherent conflict of interest in any statements and opinions contained in this website and such statements and opinions cannot be considered independent.
