Core Gold responds to Titan proposal

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Core Gold Inc. [CGLD-TSVV; CGLDF-OTCQX] has responded to a September 16, 2019, announcement by Titan Minerals Ltd. [TTM-ASX], which states that Titan intends to launch a takeover offer for all of Core’s outstanding common shares. Titan said it will offer to pay 2.5 Titan ordinary shares for each share of Core.

The announcement comes just two months after the British Columbia Supreme Court declined to approve a proposed merger transaction involving the two companies.

Titan said the merger would create a diversified Latin American-focused, ASX-listed gold company with a robust portfolio of exploration, development and production assets in both the emerging mining jurisdictions of Ecuador and the well-established mining jurisdiction of Peru.

However, the court concluded in July, 2019, that the company failed to satisfy its burden of proof in establishing that the transaction was fair and reasonable.

News of the latest proposal pushed Core Gold shares up to 23.5 cents on September 16, 2019, from a previous close of 16 cents on September 13, 2019.

On Wednesday, the stock rebounded from a low this week of 18.5 cents, rising 14.3% or $0.03 to 24.5 cents. The shares are trading in a 52-week range of 14 cents and 33 cents.

In response to the latest proposal, Core Gold cautioned that Titan has not yet commenced the offer, and said shareholders are not required to take any action at this time.

“Should Titan commence the Titan offer, the Core Gold board of directors will carefully evaluate the terms and conditions of the unsolicited Titan offer,” Core said in its press release.

“The board would then be required to make a formal recommendation to the Core Gold shareholders within 15 days of the date the Titan offer actually commences, or the board may make no recommendation at that time,” Core said.

Core Gold owns 100% of three mining production areas located in Southern Ecuador. The company is currently focused on the Dynasty Goldfield project, an open pit mine, which has a total NI 43-101-compliant resource of 2.2 million ounces of gold, the company has said. Core Gold began mining operations at Dynasty Goldfield within four months of assuming control of the company in September 2016.

Its portfolio also includes the Zaruma Gold Mine and Portovelo Mill project.

The Dynasty Goldfield is currently producing 750 tonnes-per-day of 3.2 g/t gold, material that is being processed at the Portovelo treatment plant.

Having produced more than 70,000 ounces of gold and 150,000 ounces of silver, the Zaruma gold mine is currently on stand-by.

The company also owns other significant gold exploration projects, including the Linderos and Copper Duke area in southern Ecuador, all of which are located on the main Peruvian Andean gold-copper belt, which extends into Ecuador.

On Wednesday, Core Gold announced trenching results from the El Huato target area of Copper Duke, including 120 metres averaging 0.362 g/t gold and 0.38% copper.

Titan Minerals is a gold and copper explorer and owner and operator of a gold treatment business in southern Peru.


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