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Fresnillo’s Minera Newmont ups Canplats offer to beat out Goldcorp bid

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Precious metal miner and FTSE 100 constituent Fresnillo (LSE: FRES) said that its 56% owned joint venture (JV) with Newmont Mining Corporation (NYSE: NEM), Minera Penmont S. De R.L. de C.V. has submitted a revised proposal to acquire Canplats Resources Corporation for C$4.80 per share, upping its earlier offer to beat out a rival bid from Goldcorp (TSX: G, NYSE: GG).

The consideration consists of C$4.60 in cash and a share in a new exploration company with an initial value of C$0.20 for each share in Canplats. The new exploration company would hold interests in early-stage exploration properties in Durango and Chihuahua states in Mexico and C$10 million to fund its activities.

The new offer tops Minera Penmont’s previous bid of C$4.20 per share and top Goldcorp’s offer of C$4.40 per share, consisting of C$4.20 in cash and one share in a newly formed company valued at C0.20 per share.

Canplats has determined Minera Penmont’s latest offer as superior to that of Goldcorp, which has until 5 January 2010 to amend the terms of that agreement. Goldcorp will receive a termination payment of C$9.3 million if the terms are not amended and Canplats enters into an agreement with Penmont.

Canplats’ main asset is the Camino Rojo gold-silver deposit in Mexico, which has a measured and indicated resource of 3.44 Moz (million ounces) of gold and 60.7 Moz of silver and an inferred resource of 0.55 Moz of gold and 7.6 Moz of silver hosted within the Represa deposit.

Quick facts: Fresnillo Plc

Price: 783.2141 GBX

LSE:FRES
Market: LSE
Market Cap: £58.1 m
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