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Fresnillo and Newmont Mining JV concede defeat in Canplats takeover battle

Mexico based silver miner Fresnillo (LSE: FRES) has announced that its joint venture with Newmont Mining Corporation (NYSE: NEM), Minera Penmont (Penmont), will make no further action in reference to its proposed acquisition of Canplats Resources Corporation (TSX-V: CPQ). Over the Christmas period, Penmont had been involved in a takeover tussle with New York listed gold major Goldcorp (NYSE: GG).

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.

In November, Goldcorp made an initial equity-based offer for the Toronto Ventures listed company, valueing the company at C$3.60 per share. The Penmont joint venture company on December 23 tabled a predominantly cash based offer worth a combined C$4.40. Goldcorp subsequently matched both the December 23 bid and Penmont’s improved C$4.60 offer on December 29.

The Canplats board has recommended the Goldcorp offer to its investors; resultantly Penmont determined that any further proposal to the board of Canplats would not be in the best interests of its shareholders.

Fresnillo owns 56% of the Penmont join venture company, while Newmont holds the remaining 44%.

Disclosure: The author holds no positions in the company