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Mercator Minerals Ltd
Symbol ML
Shares Issued 315,675,277
Close 2014-08-25 C$ 0.03
Market Cap C$ 9,470,258
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FP says Mercator Minerals a casualty of price crunch

2014-10-02 09:01 ET - In the News

The Financial Post reports in its Thursday edition that with global commodity prices sliding, it has been a tough time to be in the mining game. The Post's Paul Brent writes that the economics of big-budget projects have been thrown into question, forcing industry giants to abandon, downsize or sell prized assets. A multitude of assets on the block and a lack of financial injections from investors have set the stage for a resurgence of acquisition activity for mining this year, dealmakers say. Cassels, Brock & Blackwell LLP lawyer Paul Stein says: "There is only one song playing on the jukebox and that is the M&A song. ... There is little if any financing and unfortunately there are companies that simply will not survive and we have started to see that as well." Mr. Stein cites base metals miner Mercator Minerals, which filed for protection from creditors last month, as an example of a casualty of the commodity price crunch. Size is providing no immunity. Earlier this month, diversified mining heavyweight Anglo American PLC said it would entertain takeover offers if the price was right. One lawyer says after a summer M&A slowdown the focus is once again on getting better through dealmaking.

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