Gammon, Timmons raise bids for Capital Gold
- Publishing Date
- 16 Mar 2011 11:34am GMT
- Author
- Mining Journal
The battle for control of Canada’a Capital Gold Corp has intensified after competing suitors Gammon Gold Inc and Timmins Gold Corp both improved offers for the company.
Vancouver-based Timmins increased its offer to 2.27 of its share plus US$0.25 in cash for each Capital Gold share. This values each Capital Gold share at US$5.89 each.
Meanwhile, Gammon responded to Timmins’ upgrade with what was dubbed its “firm and final offer”. Toronto-based Gammon amended its offer by raising the cash component to US$1.09 and 0.5209 of its shares.
Overall, the new Timmins offer values Capital Gold at about US$361 million when the bid was made, while Gammon’s upgrade had the target worth about US$335 million.
The companies have been in pursuit of Capital Gold since late September last year when Timmons made its initial US$266 million bid.
Capital Gold’s key asset is the El Chanate open pit gold mine in Mexico, which has been forecast to produce 65,000-70,000oz in the 2011 fiscal year.
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