Titan continues pursuit of Core with $77m bid

Subiaco-based Titan Minerals has launched its second takeover offer this year for Canada-based Core Gold, which is the largest gold producer in Ecuador, for a lower value than its initial bid.

Titan said its “improved” all-scrip offer comprises of 2.5 Titan shares for each Core Gold share held, valuing Core Gold shares at $C0.422, a 164 per cent premium its closing price on September 13.

This equates to C$70.4 million ($A77.4 million).

Titan said it would also acquire Core’s secured debt for $US2.5 million ($3.64 million).

Core Gold’s primary focus is its Dynasty Goldfield project in Ecuador, but it owns other gold exploration projects in the South American country, including the Linderos and Copper Duke projects.

Titan managing director Laurence Marsland said the acquisition would be a fit for both companies.

“We believe that the financial and strategic rationale for a combination with Core Gold is compelling, and that the transaction is in the best interests of both Titan Minerals and Core Gold shareholders,” he said.

“We look forward to formally initiating our bid and anticipate launching our offer within the next two weeks.”

In February, Titan looked set to acquire Core in a scrip deal worth C$72 million ($A79.2), but Core major shareholder Keith Piggott mounted a successful campaign against the offer.

Mr Piggott stated that Titan shares were highly illiquid and overvalued, its executive director Matthew Carr had a track record of destroying shareholder value, and individuals allegedly linked to Titan were involved in questionable activities related to an incident involving firearms at the Tulín plant in Perú.

Mr Carr was previously a professional Australian rules footballer for the Fremantle Dockers.

Shares in Titan were flat at 18 cents at 3pm AEST.