Idaho General's Gold Rush

Idaho General Mines (GMO Quote) surged 23% Tuesday on speculation the Spokane, Wash.-based metals miner could be in play.

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 a regulatory filing with the Securities and Exchange Commission.

Coghill holds some 26% of the outstanding shares in Idaho General. The metals outfit, which was founded in 1925, explores for molybdenum as well as silver, gold, base metals and other specialty metals.

Calls to Idaho General CEO Bob Russell were not immediately returned, and Coghill President Clint Coghill was unavailable to comment.

Trading volume in the company Tuesday was 2.7 million shares, compared with daily average volume of 131,558. The company's stock closed at $6.65, giving Idaho a market capitalization at the company of about $292 million.

Trading in the stock continued to be brisk after hours, with some 44,000 shares changing hands, including one large block of 40,000 shares.