The battle between Goldcorp (G-T, GG-N) and Minera Penmont for Canplats Resources‘ (CPQ-V) Camino Rojo gold-silver deposit in Mexico took another twist on Dec. 29 with a new bid from the Canadian gold major — the second time it has raised its offer for the junior in a week.
Camino Rojo is just 50 km from Goldcorp’s Penasquito gold-silver mine and the gold major wants it badly enough to match the revised bid made on Dec. 28 by its rival, a joint venture of global mining giants Fresnillo (FRES-L, FNLPF-O) and Newmont Mining (NMC-T, NEM-N).
Goldcorp is now offering $4.80 per share comprised of $4.60 cash per share plus shares of a new company that will hold Canplats’ exploration properties with a value of 20¢ per share. The new exploration company would hold $10 million in cash and Canplats’ Rodeo, El Rincon, Mecatona, Maijoma and El Alamo Properties.
Assuming 58.6 million shares — the number from a Canplats’ filing earlier this year — that would value the Goldcorp offer at about C$281.44 million.
In November Goldcorp bid $238 million for Canplats and won the right to match any superior offers.
Under the matched terms of Goldcorp’s latest proposal, the termination fee payable to Goldcorp will be increased to $10.2 million, consistent with the proposed terms of the Penmont proposal.
Canplats said it recommended that its shareholders accept the offer, and a shareholder meeting is scheduled for the middle of January.
At presstime Goldcorp was trading at $41 per share; the gold major has traded in a 52-week range of $29.08-$48.37 per share. Canplats was trading at $5.12 per share; the junior has traded in a 52-week range of $1.49-$5.15 per share.
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