TORONTO (Reuters) — Corporate takeovers may have been last year’s story in the Canadian mining sector, but a recent flurry of announced deals combined with tight metals markets suggests the M&A bonanza will continue.The blockbuster takeovers of venerable miners Inco and Falconbridge in 2006 took two of the biggest names out of Canada’s mining sector.

But with metals prices at historic highs, smaller companies that remain are desperate to gain scale, while foreign players are eager to grab up what’s left.

“We’ve seen an awful lot of foreign-led takeovers, and I think that’s going to continue,” said Glenn MacNeill, chief investment officer at Sentry Select Capital Management.

“They have the capital, and their cost of capital is lower than ours.”

Still-strong foreign interest was in evidence as Swiss miner Xstrata Plc, fresh from its takeover of Falconbridge, said last month it would buy Canadian nickel miner LionOre for US$4 billion.

Domestic mid-tier miner Lundin Mining Corp., meanwhile, has announced two offers in as many weeks, pledging C$1.4 billion for Tenke Mining and C$864 million for Rio Narcea Gold Mines.

This activity, and speculation of more of the same, has boosted the share prices of miners with exposure to in-demand metals such as nickel, copper, zinc and uranium.

Over the last two weeks, the Toronto Stock Exchange’s materials sector, which includes mining issues and makes up just under 20 percent of the broader Toronto stock index, has risen 5 percent.

The S&P/TSX composite index finished the week at 13,578.62, a record closing high, and touched a record high of 13,581.27 during the session.