* Says offering 'less onerous terms' than Gammon
* Timmins values Capital Gold at $4.48/shr
* Analysts say Timmins offers bigger premium than Gammon
(Adds analysts comments, details; in U.S. dollars unless
TORONTO, Dec 3 Timmins Gold TMM.V said on
Friday that it had asked the board of Capital Gold CGC.A
CGC.TO to reconsider its offer for the company, which has
already agreed to be bought by Gammon Gold GAM.TO.
On Oct. 1, Gammon said it would buy Capital Gold in a
friendly $288 million cash and share deal as the mid-tier miner
looks to strengthen its position as a leading gold producer
focused on Mexico. [ID:nN01237883]
Timmins, which values Capital Gold at $4.48 per share, said
it would be willing to enter into an agreement that "imposes
far less onerous terms" than the Gammon offer.
It also said its all-share offer exceeds the Gammon bid by
22 cents per share.
"We've been favoring the Timmins offer," said Stuart
McDougall, an analyst with Jennings Capital. "Just on a price
basis, it's got a higher premium than the Gammon offer."
He added that if Capital does not respond to the latest
bid, Vancouver-based Timmins will "go hostile and let the
shareholders of Capital Gold decide."
In its October release, Gammon said its offer was worth
$4.57 a share based on its Sept. 24 closing price of C$7.44.
Gammon's shares were at C$7.56 on the Toronto Stock Exchange on
In a note to clients, Octagon Capital analyst Hendrik
Visagie said that, based on Thursday's close, the Gammon offer
was worth $4.53 per Capital Gold share and the Timmins Gold
offer was worth $4.68.
Gammon is being advised on the deal by Dundee Securities
and UBS Canada, while Capital's financial adviser is Cormark
Capital Gold owns the El Chanate gold mine in Sonora,
Mexico as well as the Orion development project in the
country's Nayarit province.
Shares of Timmins were up 2.38 percent at C$2.15 on the TSX
Venture Exchange, while Capital Gold's shares were up 3 percent
at C$4.78 on the Toronto Stock Exchange.
(Reporting by Julie Gordon in Toronto and Aftab Ahmed in
Bangalore; editing by Rob Wilson)