PERTH (miningweekly.com) – ASX-listed junior Heron Resources has upped the ante in its bid to gain a major shareholding in fellow-listed Golden Cross Resources, with the company offering A$1.88-million for a 19.9% interest.

In October, Golden Cross announced a one-for-one rights issue in an attempt to raise A$6.81-million to fund exploration and development costs on its Copper Hill copper/gold project, in New South Wales, as well as its South Australian tenements.

Shareholders only subscribed for about 135.2-million shares, leaving more than 1.2-billion shares on shortfall. Major shareholder HQ Mining did not take part in the entitlement offer.

In November, Heron made a nonbinding indicative proposal to take up about 500-million of the shortfall shares, which would have given the company a 24.8% interest in Golden Cross. The proposal was conditional upon shareholder approval and a number of further conditions.

However, by December, Heron received a written response from Golden Cross, saying that the company’s board had voted against the indicative proposal. Shortly thereafter, HQ Mining provided a counter proposal, offering Golden Cross shareholders two options to raise the cash.

The first was a placement subscription for a maximum of 680-million shares, to raise A$3.4-million, or a minimum uptake of just under 376-million shares, to raise A$1.87-million to match the Heron offer.

The Golden Cross board subsequently decided that the first option was not in the best interest of all shareholders, and also rejected the second offer from HQ Mining, but an extraordinary general meeting (EGM) would be called to give shareholders the deciding voice.

Heron said on Wednesday that it was now looking to acquire about 375.9-million shares in Golden Cross, at a price of A$0.005 each.

The offer period has been extended until two days after Golden Cross’ proposed EGM, with four market-based conditions being waived.

The pricing of the Heron offer was a 66.7% premium to Golden Cross’ closing price on December 13, and a 29.5% premium to the ten-day volume-weighted average price between December 2 and 13.