Shares in Vancouver-based Core Gold Inc. (TSX-Venture: CGLD) took a sharply upward trip Tuesday, on word that Australian-based Titan Minerals had lodged a formal takeover offer for all of Core’s issued and outstanding common shares.
The miner, based in Perth, Australian, is reportedly offering 2.5 fully paid ordinary shares of Titan for each Core Gold share, representing the equivalent of $0.422 Canadian per Core Gold share.
The offer represents a compelling premium of 164% over the closing price of Core Gold Shares on September 13, and a 160% premium over the volume weighted average price for Core Gold Shares for the last 20 trading days ended the aforementioned September 13.
Titan’s board of directors believe combining the two companies will establish an emerging Latin American-focused gold explorer, developer and producer with an extensive portfolio of assets in Ecuador and Peru
The offer runs out on Tuesday, January 14, 2020, unless extended or withdrawn by Titan.
CGLD shares triumphed five cents, or 23.3%, to 26.5 cents, on volume of 108,500 shares.
