Idaho General Shines

Private-equity funds are circling around Idaho General Mines (GMO Quote), a tiny Spokane, Wash.-based mining company.

Shares surged 6% early Monday in heavy volume after Citadel revealed that it has amassed a 6.5% interest in the company.

According to filings with the Securities and Exchange Commission, Citadel founder Kenneth Griffin has acquired some 3.39 million shares in Idaho General -- a tiny mining company with a market capitalization of about $292 million.

Calls to Idaho General CEO Bob Russell weren't immediately returned, nor were calls to Citadel.

The company's largest shareholder, Chicago-based Coghill Capital Management, contacted Idaho General at the beginning of the month to discuss "possible business combination transactions," according to another SEC filing.

Coghill has been increasing its position in Idaho General over the past several months, accumulating about 26% of its outstanding shares.

The metals outfit, which was founded in 1925, explores for molybdenum as well as silver, gold, base metals and other specialty metals.