A takeover in the gold-mining industry has shaken things up just a little bit this morning.Vancouver's B2Gold Corp. has agreed to buy CGA Mining of Perth, Australia, for about $1.1 billion in stock. B2Gold's share price – the currency in this transaction – is up 56 percent since May 15, compared with a gain of 73 percent for the TSX-listed CGA. Calls are in to the principals and Paul Bagnell has the file. We'll take a look at what the now-mid-tier miner will look like and whether it's a combination that will prove attractive to investors.
The deal comes amid growing optimism that gold will extend its gains into the end of the year as more central banks move to spur economic growth. Gold has climbed 15 percent since mid-May.
Three cheers for Cheerios! General Mills topped analyst estimates in the first quarter and reiterated its forecast for the full-year as sales were boosted by the purchase of Yoplait International.
In economics, U.S. housing starts for August could help determine sentiment today. Builders are expected to have broken ground on 767,000 homes in the month, which would mark a four-year high. In Canada, the Teranet/National Bank home price index for August is due out at 9:00 am Eastern.