Add junior uranium play UEX Corp. to the list of mining companies that are obvious takeover targets.
Cameco, a dominant player in uranium, quietly gobbled up another 2.1 per cent of UEX. The purchase brings Cameco's total holding to 23.3 per cent of a company with a $155-million market capitalization- a tip of the hat to Dow Jones for spotting this development.
UEX has stakes in eight uranium projects. The interesting tension within this small cap company is that several of those projects are partnerships with French uranium company AREVA, a global rival to Cameco.
Other mining companies that feature senior players as minority investors - and an obvious potential role as an acquirer - include Osisko Ming, where Goldcorp has a toehold, and Red Back Mining, which features Kinross Gold as a backer.