An investment report by Canaccord Wealth Management hinted Thursday that Keegan Resources is a potential takeover candidate.
Keegan Resources Inc. (TSX: T.KGN, Stock Forum) continued to rally Thursday after reporting an update resource estimate for the Esaase gold project in Ghana, West Africa.
The revised estimate consists of 3.83 million ounces of measured and indicated resources and 1.25 million ounces in the inferred category, the company said in a press release.
“A Bay Street analyst notes that with US$188 million in cash in the bank, Keegan expects to be able to put roughly US$175 million towards project development,’’ Canaccord said. “This leaves a funding gap of only US$100 million to finance the project,’’ Canaccord said.
The Canaccord report made no mention of who might see Keegan as a possible target.
Up 3% to $3.69 in mid-morning trading, Keegan has a market cap of $278.8 million, based on 75.5 million shares outstanding. The 52-week range is $6.33 and $2.38.
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