Maritime Resources Corp (CVE:MAE) zipped up 15% on Monday as Anaconda Mining Inc (CVE:ANX) said it would take a premium offer for the firm direct to shareholders.
The Anaconda bid - of 0.364 of a company share for every Maritime share - is at a 40% premium to the closing price of Maritime shares on Friday, as the former seeks to bring the Hammerdown and Orion gold projects under its control
The offer also represents a 44% premium to the volume weighted average trading price of $0.097 per Maritime share over the 20 trading days ended March 16.
"In the past 10 years, Anaconda has built a strong reputation in Newfoundland with all stakeholders and assembled significant operating infrastructure, including a 1,300-tonne per day mill, tailings capacity for approximately 15 years and a port facility, said Dustin Angelo, Anaconda's chief executive.
"With favourable logistics and existing infrastructure in place, Anaconda expects it will be able to accelerate the development of the Hammerdown and Orion gold deposits at a lower capital cost than if the deposits were a stand-alone project.
"In doing so, we could deliver exceptional value in an expedited fashion to both Maritime and Anaconda shareholders."
Anaconda first submitted a proposal on January 29 this year and says it has repeatedly attempted to have constructive discussions with the Maritime board.
"Despite the insufficient response to date from the board of Maritime, we remain steadfast in our resolve to bring our two companies together and be the catalyst we believe Maritime shareholders have been searching for."
It believes it can accelerate the development of Maritime's Hammerdown and Orion gold deposits using its proven infrastructure at the Point Rousse project.
Maritime shares added 15% to C$0.12. Anaconda shares shed 2.6% to C$0.38.