On Monday, Sherwood Copper Corp. (SWOPF.PK) and Capstone Mining Corp. (CSFFF.PK) unveiled a rare "at-market" merger, where Capstone is buying Sherwood with no premium. The idea is simple - put the two small companies together to build something that's better than the sum of its parts.

Is that a good idea? Blackmont Capital analyst George Topping thinks it is, because the deal gives Sherwood more scale, increased cash flow to develop new mines, and diversification in geography and production. He does not expect a rival bid because of Sherwood's remote location in the Yukon.

Scotia Capital will be shifting their gaze towards seven up-and-coming small cap copper and zinc mining operations with an impressive anticipated collective growth rate of 45% in 2009, the research firm said.

Scotia analyst Alex Terentiew and others have initiated coverage of six companies focused on copper and one focused on zinc. They expect big things from Mercator Minerals Ltd. (MLKFF.PK), Sherwood Copper Corp. (SWOPF.PK), and Capstone Mining Corp. (CSFFF.PK), predicting all three will provide investors with significant growth at a discount.

David Coffin and his brother Eric are the co-editors of the HRA (Hard Rock Analyst) family of publications. David is the “rocks side” of HRA, and has been active in mining exploration for over 30 years in roles spanning prospecting through feasibility studies, and now markets commentary.

David went against the crowd in the late 1990s, urging companies to return to high grade underground mining, which turned out to be salvation for many of them during the bear market that followed. He was also one of the first (along with Eric) to call the current cycle as the secular trend others have only recently recognized. Although the HRA publications keep him too busy to do much else he is still regularly asked to review and give opinions on new exploration projects.