It is unclear if Papillon is the predator or the prey in any deal, though analysts have long tipped the company as a prime merger and acquisition target.

Macquarie Securities has named Papillon as one of its top buy companies among gold explorers and developers.

Papillon’s 5.15 million ounce Fekola project in Mali is widely considered one of the best undeveloped gold deposits in the world.

Papillon released an impressive prefeasibility study for Fekola in June, outlining production of 306,000 ounces of gold per annum at average at C1 cash costs of $US580 per ounce and all-in cash costs of $725/oz over an initial nine-year life.

The definitive feasibility study for Fekola kicked off in March and is scheduled for completion later this year, but the company this month started early works to minimise any delays later on due to the wet season.

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 A89c in December to a 52-week high of $1.49 in March.

The stock edged back towards that high last weekl, closing at $1.42 on Friday on increased volume.

The company expects the halt to last until the opening of trade on Wednesday.