Titan eyes Ecuador with Core Gold bid

Titan Minerals is set to make an offer to acquire Canadian-based Core Gold in a bid to create an “emerging Latin American-focussed gold explorer, developer and producer.”

Given Core Gold’s presence in Ecuador as the largest gold producer, Titan expects to gain a larger portfolio in the country, as well as a substantially stronger balance sheet as part of the acquisition.

Titan’s offer gives them exposure to the mineral resources at the Dynasty Goldfield project, while also diversifying the company’s asset base into the emerging mining jurisdiction of Ecuador.

Titan’s managing director Laurence Marsland emphasised the offer would draw on “the best physical and human resources of both Titan and Core Gold.”

“We believe that the financial and strategic rationale for a combination with Core Gold is compelling, and that the transaction is in the best interests of both Titan Minerals and Core Gold shareholders,” Marsland said.

“We look forward to formally initiating our bid and anticipate launching our offer within the next two weeks.”

Core Gold is focussed on gold production at its wholly-owned Dynasty mining unit and continued development as its underground Zaruma mine.

The company also owns other gold exploration projects including the Linderos and Copper Duke projects in southern Ecuador.

Titan’s offer includes 2.5 Titan shares for each Core Gold common share held, valuing Core Gold shares at $C0.422, a 164 per cent premium to the closing price on September 13.

Titan has acquired all of Core Gold’s secured debt for $US2.5 million ($3.64 million) in order to ensure the long-term success of its assets.

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