Fresnillo tops Goldcorp bid for Canplats

23rd Dec 2009 08:20

Minera Penmont, the joint venture 56% owned by silver miner Fresnillo, has made a bid to snatch Canadian mining company Canplats Resources from bullion producer Goldcorp.Minera is offering C$4.20 in cash plus one share, with a notional value of C$0.20, in a new exploration company for every Canplats share.The offer terms trump those offer by Goldcorp, the world’s second largest bullion producer. Goldcorp launched an offer in November worth C$238m. A statement from Fresnillo said that the Minera terms represent ‘a premium of 38% to the implied value of the proposed Goldcorp transaction based on the closing price of the common shares of Goldcorp on the Toronto Stock Exchange on December 22, 2009.’The board of Canplats has withdrawn its recommendation of the Goldcorp offer and has thrown its lot in with Minera Penmont.The new agreement includes a break fee of C$9.3m payable to Penmont in certain circumstances.Goldcorp has until the end of the year to amend the terms of its offer. If it fails to do so, or if any amended offer is still rejected by the Canplats board, then Canplats will pay a termination fee of C$7.2m to Goldcorp.The primary focus of Canplats is Camino Rojo, a gold and polymetallic discovery n Zacatecas state, Mexico.The new exploration company to be set up as part of the takeover will be wholly owned by Canplats shareholders. It will hold interests in certain early-stage exploration properties located in Durango and Chihuahua states, Mexico and will have C$10 million to fund its activities.Fresnillo’s partner in the Minera Penmont joint venture is Newmont Mining.