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Chocolatiers post, which I have copied and pasted below, sums it up best.
"In the Heart of Two Giants" The Battle: Why two major gold producers may bid for this gold explorer
Surrounded by two large gold producers, Urastar Gold Corp. owns the last properties within a special gold district in Mexico that are not controlled by major mining companies. The well-known miners Agnico-Eagle and Alamos Gold have secured all properties around the Mulatos Gold Mine - solely Urastar is left operating prospective projects in that district and even in the heart of those two majors. How valuable properties near the Mulatos Mine can be demonstrated Grayd Resources in 2011 which company was taken over by Alamos for around $255 million thus paying more than $200 per ounce in the ground - a record price for this part of Mexico. Why this high price? Well, the Mulatos Mine is among the world`s gold mines with the highest profit margins. The production costs are below $400 per ounce, whereas the industry average is getting close to $1,000. Hence, a potential take-over or property acquisition may be around the corner, especially when considering the latest press-release dated August 3: “Urastar is exploring strategic alternatives available to the Company, including a potential sale. The Board of Directors intends to consider the full range of available options. Also, the Company is pleased to announce that it has engaged the services of Dahlman Rose & Company, LLC of New York, as its exclusive financial advisor to assist in the evaluation of these options.“