Timmins raises bid for Capital Gold

Timmins Gold (TSX-V:TMM) has sweetened a takeover deal for Capital Gold (TSX:CGC) just days before Capital’s shareholders vote on a merger with another company, according to a report in BIV Business Today:

On Tuesday, the Vancouver-based gold producer upped its offer for Capital Gold by US$0.25 per share.

The increased offer provides Capital shareholders with a total consideration of US$5.89 per share, valuing the New York-based gold producer at approximately $361 million.

Timmins said Tuesday the offer exceeds a proposed merger between Capital Gold and Gammon Gold (TSX:GAM) by US$0.47 per share.

At the centre of the takeover battle is Capital’s El Chanate asset, an open pit gold mine in Sonora, Mexico.

The mine is located near Timmins’ San Francisco gold mine, which began pouring gold last year.