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Last Friday, a Canadian appellate court determined that shareholders of gold mining giant Goldcorp (NYSE:GG) would not be able to vote on the company's merger with Glamis Gold, rejecting the appeal of Goldcorp's former CEO and largest shareholder, Rob McEwen.

Obviously, this is a blow for shareholder rights. But it may also be a boon for one of my favorite mining concerns, U.S. Gold (USGL.OB), where McEwen is currently CEO. Bill Cara reports that McEwen is likely to sell his 1.5% (or more than $150 million) stake in Goldcorp. I wouldn't be at all surprised to see McEwen plow that money back in US Gold, especially since that company is trading at about half of its 52-week high. McEwen already owns 11.1M shares, or roughly 22% of the company. He could more than double that stake with the proceeds of his anticipated Goldcorp sales, and still have money left over. Keep in mind that USGL only has a float of 24.5M shares, so any major buying pressure could dramatically boost prices.

There are other reasons to like USGL at this juncture. The price of gold prices has resumed its uptrend, and USGL shares look like they put in a solid double-bottom around 4. I continue to hold a long position in USGL, and expect at least another 60% upside. If McEwen does in fact redeploy his considerable Goldcorp stake into USGL, as I speculate he may, that 60% figure may prove conservative.

Disclosure: I am long USGL.OB. I have no position in GG or GLG.

USGL 1-yr chart:

usgl

Source: Will Rob McEwen Now Raise His Stake in U.S. Gold?