The S&P/ASX 200 rose 3 points for the month, despite volatility in resources.

Iron ore dropped 12.9% over the month to a 21-month low of $US91.80 per tonne, while gold dropped around 3.5% to $1250 an ounce, levels not seen since February.

Local iron ore producers are also facing impending strike action by tugboat operators at Port Hedland.

Miners that ship through Port Hedland include BHP Billiton, Fortescue Metals Group, Atlas Iron and BC Iron, all four of which posted share price drops during May.

May saw more movement on the mergers and acquisitions front.

Norton Gold Fields has secured 8.1% of resistant prey Bullabulling Gold, though the offer is due to close today.

Norton has made an application to the Takeover’s Panel over statements made by Bullabulling to its shareholders but no decision has been made on whether to appoint a sitting panel.

There was also Baosteel Resources and Aurizon Holdings’ surprise joint bid for Aquila Resources.

Aquila’s independent board committee is due to make a recommendation any day now, though the chance of a superior offer is fading with the iron ore price.

Copper-gold miner PanAust revealed during the month that it received a non-binding off-market takeover proposal from its major shareholder, China’s Guangdong Rising Assets Management.

The proposed $A2.20 per share offer was raised to $2.30 per share, with GRAM already holding 23% of PanAust.

PanAust told shareholders at its annual general meeting on Friday that it was allowing GRAM to complete due diligence but the offer was below the level at which the board would be prepared to recommend it.

“The board will also seek alternative proposals, and similar access to what has been afforded GRAM will be offered to other potential bidders,” PanAust chairman Garry Hounsell told the meeting.

Fellow copper giant OZ Minerals has also reported a high level of interest from potential partners or acquirers of its Carrapateena project, though it remains unclear how close the company may be to any potential deal.

The key stock to watch this week will be Papillon Resources, which is in suspension until Wednesday pending an announcement of a corporate transaction.

Analysts have long tipped the company as a prime M&A target due to the high quality of its 5.15 million ounce Fekola gold project in Mali.

An Australian bidder is highly unlikely and the name that has been thrown around the most is Canada’s acquisitive producer B2Gold.

Papillon is led by self-confessed “deal junkie” Mark Connelly, who was behind the merger of his previous company Adamus Resources with Endeavour Mining Corporation.

Shares in Papillon have performed strongly this year, rising from just 89c in December to a 52-week high of $1.49 in March and last closed at $1.42.

Resources investment company Lion Selection predicts a rise in M&A activity among juniors, with 611 non-producing companies with a market capitalisation of less than $100 million on the Australian Securities Exchange, of which 424, or 70%, had cash of less than $2 million.

“In the current depressed market, it’s impossible to see all of these companies getting the equity funding support they require to continue working,” Lion said.

“Chatter from junior companies suggests there is growing discussion amongst junior companies about potential business consolidation but this will test the pragmatism of company directors.”

On the initial public offering front, copper explorer Stavely Minerals listed during May, breaking the mining float drought, closing at a 20% premium to its 20c listing price.

Sovereign Gold Company spin-off Mount Adrah Gold will be hoping to do the same.

The company is trying to raise up to $3 million in its IPO, which has been extended to June 18 with a tentative listing date of June 27.

In project news, West African Resources is due to release a scoping study for its 1.5Moz Mankarga 5 deposit in Burkina Faso.

Cassini Resources is due to begin drilling at its new West Musgrave project acquired from BHP.

And investors will be keeping a close eye on Resource and Investment after its shares jumped 120% over one week on copper results from the Bryah Basin.

Sandfire Resources is the major player in the region, though a deal with RNI may not be as easy as tie-ups with Talisman Mining and Ventnor Resources.

RNI boss Miles Kennedy chaired Sandfire until a famous falling out with Sandfire managing director Karl Simich, though enough time may have passed to allow further consolidation in the region.