* Says willing for 'less onerous terms' in agreement
* Timmins values Capital Gold at $4.48/shr
Dec 3 Timmins Gold Corp TMM.V said it 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 rival Capital Gold in a
friendly $288 million cash and share deal as the mid-tier miner
looks to strengthen its position as a leading Mexico-focused
gold producer. [ID:nN01237883]
Timmins, which values Capital Gold at $4.48 per share, said
it would be willing to enter into a merger agreement that
"imposes far less onerous terms" than the terms contained in
agreement with Gammon.
Vancouver-based Timmins said if Capital Gold mergers with
it then it would significantly reduce termination fee.
Timmins is looking to create a mid-tier gold producer with
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 closed at C$2.10 on Thursday on the
Toronto Venture Exchange, while Capital Gold's shares closed at
C$4.64 on the Toronto Stock Exchange. Capital Gold has lost
more than 5 percent since Gammon made the offer.
(Reporting by Aftab Ahmed in Bangalore; Editing by Maju
(firstname.lastname@example.org; within U.S. +1 646 223 8780;
outside U.S. +91 80 4135 5800; Reuters Messaging: