Market realities are starting to bite and the combination of Oban Mining (TSX: OBM) with three other companies is a good model to emulate at a time when the vast majority of management teams in the junior mining sector are struggling to keep their heads above water, some industry observers say.
Earlier this week, Oban Mining completed a business combination with Eagle Hill, Ryan Gold and Corona Gold, consolidating ground in prospective mining camps in Ontario and Quebec and bundling together cash reserves of $63 million.
“It’s a perfect example of what the juniors should be doing,” says Alka Singh, a geologist and independent mining analyst who has covered the mining sector for more than a decade. “The industry has to reinvent itself and now is the time to consolidate.”
It’s particularly true in well-known mining camps, she says, where there are a large number of small players that have projects of perhaps one million ounces of gold here and there, but little money to develop them.
Read the complete article at NorthernMiner.com/news/oban-mining