UPDATE 1- Solitario Exploration boosts bid for Metallic Ventures

* Solitario raises consideration to $18 mln from $15.5 mln

* Says rival bid for Metallic Ventures

Oct 13 (Reuters) - Solitario Exploration & Royalty Corp (SLR.TO) said it had raised its stock-and-cash offer to buy Metallic Ventures Gold Inc (MVG.TO) after Metallic Ventures received a takeover bid from a third party and on higher gold prices.

Solitario said it would increase the cash consideration to $18 million from $15.5 million and number of shares to 19.5 million from 17.0 million.

For each common share of Metallic Ventures, Solitario will pay $0.34621 in cash and issue 0.375061 of its shares.

"This enhanced offer to Metallic Ventures shareholders was the result of Metallic Ventures receiving a proposal from a third party and the significant improvement in the gold market since the agreement was signed," Chris Herald, chief executive of Solitario, said in a statement.

Metallic Ventures has agreed to pay Solitario an increased termination fee of $2.2 million, under certain circumstances. The parties also agreed to extend the termination deadline to Feb. 28, 2010 from Dec. 31, 2009.

The Metallic Ventures' assets includes its 3 percent net smelter return royalty on Barrick Gold's (ABX.TO) Ruby Hill gold mine located in Nevada.

Shares of Solitario were up 3 Canadian cents at C$2.13, while those of Metallic Ventures were up 6 Canadian cents at 98 Canadian cents Tuesday morning on the Toronto Stock Exchange. (Reporting by R. Manikandan in Bangalore; Editing by Maju Samuel)