A drop in gold prices has threatened the growing momentum of mining mergers and acquisitions in the sector. Reuters reported that the price of gold has fallen to a five year low of $1,088 per ounce.
White & Case partner John Tivey said: "Gold price volatility was a setback for deal-making as it made it hard to agree on valuations. Companies that were already committed to sales programmes in a bid to reduce debt would have to lower their price expectations.
"In the face of a continued fall in the gold price the market will get to a point where smaller gold miners have no choice but to more aggressively look for merger opportunities or strategic investors in order to survive."