PERTH (miningweekly.com) – ASX-listed Titan Minerals has increased its takeover offer for TSX-V-listed Core Gold.

Titan in September launched a takeover offer for Core Gold, offering its shareholders 2.5 fully paid Titan shares for each Core share held, valuing the Canadian takeover target’s shares at 42.2c each.

The Australian company has now increased its offer to 3.1 Titan shares for each Core share held, valuing Core Gold at 52.3c each.

Titan told shareholders that the increased offer represented a 227% premium to Core’s closing price on September 13, and a 204% premium to the company’s 30-day volume weighted average share price, before the takeover intent was announced.

“Titan is committed to a successful combination of these two exciting growth companies. Our vision is to create a critical mass of resources that when supported by the financial resources which Titan can bring will result in a rapid and accelerated development of the assets and a significant de-rating for the combined company,” said Titan CEO Laurence Marsland.

“At this time, shareholders holding 45% of Core’s share capital have now entered into lock-up arrangements to accept the increased offer, demonstrating a broad consensus of support for the transaction.

“We look forward to moving to an expeditious closing of the increased offer, and to welcoming our new shareholders on board,” Marsland said.

Core on Tuesday pointed out that to fulfill the statutory minimum condition of the Titan increased offer, at least 50.1% of the issued and outstanding Core Gold common shares excluding the shares held by Titan must be tendered.

Currently, Titan has announced that the lock-up agreements cover 48.4% of the 50.1% needed for this calculation, a shortfall of approximately 2.6-million shares needed to satisfy this condition.

Meanwhile, Titan also said that it would undertake an equity capital raise to raise some A$3.5-million, and would seek to enter into a credit committee approval term sheet or subscription commitment with the view of undertaking an additional financing to raise up to $10-million. This additional financing could comprise a credit facility or other borrowing structure, the company said.

Core has again advised shareholders not to take any action, saying that the company’s board was assessing the increased offer.

The increased offer is open until January 14.