- Gold producer Titan Minerals (TTM) will remain suspended from trading until its takeover bid for Canadian-based Core Gold is released
- Last September, Titan first proposed the buy
- Its current offer is a 227 per cent premium on Core Gold’s closing price from September 13, 2019
- Today, Titan says it has secured a $14.25 million (US$10 million) loan to help fund the purchase
- It is also set to raise $3.5 million from shareholders for the Core Gold buy
- Core Gold’s board is still deliberating whether it will accept Titan’s offer
Emerging gold producer Titan Minerals (TTM) will remain suspended from trading until the release of its takeover bid for Canadian-based Core Gold.
In September last year, Titan Minerals announced its intention to purchase a full interest in the Toronto-listed gold company.
Initially the offer was 2.5 fully paid, ordinary Titan shares for every Core Gold share, marking a 164 per cent premium from the closing price on September 13, 2019.
As announced on December 9, 2019, this has been increased 3.1 Titan shares for each Core Gold share, now marking a 227 per cent premium. This values Core Gold shares at 57 cents each (CAD$0.523).
In today’s release to the Australian market, Titan detailed it has secured a loan facility in which it can borrow up to $14.25 million (US$10 million), to be paid back by the end of 2020. These finances will be used to assist the purchase of Core Gold, alongside the $3.5 million to be raised from shareholders.
Domestic and international sophisticated and institutional investors have been invited to buy Titan shares at 16 cents each as part of the $3.5 million raise.
Core Gold operates predominately in Ecuador. Its flagship project, The Dynasty Goldfield, is forecast to hold 2.14 million ounces of gold.
The Canadian gold company is still waiting on board approval as to whether Titan Minerals purchase will go ahead. Shares in the company are currently trading for 23 cents (CAD$0.21) each.
Titan Minerals’ last closing share price is 18 cents each.