Dominion Mining Keen On $376 Million Kingsgate Takeover

Dominion Mining Ltd (ASX:DOM) has seen its shares rise this week after it agreed to a $376 million takeover bid from Kingsgate Consolidated Ltd. The rise of 19% in its share prices is the highest that Dominion Mining has seen in four years since October 19, 2006.

Dominion owns the Challenger gold mine in South Australia and other gold and base metal projects in Western Australia. The board of directors have recommended the offer made by Kingsgate Consolidated to its shareholders subject to a higher offer and an independent expert's evaluation.

Kingsgate Consolidated is the second largest gold producer by market value on the Australian Stock Exchange. The shares in the company fell 7.1 % after the takeover bid for Dominion Mining became known.

Some experts feel that the offer made by Kingsgate for Dominion will mark it out as a prospect to larger predators. The Sydney based Kingsgate owns the Chatree gold project in Thailand. And with consolidations deals being the order of the day in the gold mining sector, someone may make a bid for Kingsgate as well.