The Globe and Mail reports in its Saturday edition that if you are the top executive at one of Canada's many mid-tier gold miners, you can expect invocations to replace those declining reserves by staging a takeover. The Globe's Andrew Willis writes, however, that is also one way to turn your mid-tier miner into a small cap. Managements and boards have a well-founded reluctance to roll out acquisition-based growth strategies. However, gold bullion prices are rising and the sector is ripe for consolidation. The logic behind mining takeovers is compelling. Most mid-tier precious metal producers rely on one or two mines. If something goes wrong at these properties, the stock price falls down a mine shaft. A report released earlier this month by Bank of Nova Scotia highlighted the potential for takeovers: "Both investors and companies tell us that after a host of performance issues experienced by single-mine operators, it is time to consider mergers," the bank's mining analysts wrote. "There are sound reasons to make acquisitions -- namely, reserve replacement and diversification," Scotiabank's team said. The analysts then helpfully listed their favourite takeover targets: Torex, Pretium and Silvercrest Metals.