Yamana Gold Inc. (TSX:YRI) is sweetening the deal to takeover Nevada-based Meridian Gold Inc. (TSX:MNG), which is a condition of the merger with Vancouver's Northern Orion Resources Inc. (TSX:NNO).
In addition to extending the offer deadline to October 2 from September 24, Yamana has increased the offer's cash component to $6.50 per Meridian share, up $2.50 per share from the previous cash increase in mid-August.
Meridian shareholders would still receive 2.235 Yamana shares for each Meridian share in addition to the cash component.
Yamana has also reduced the minimum tender condition from two-thirds of Meridian shares to 50.1%. To date, roughly 24% of Meridian shareholders have tendered their shares to the deal. The company noted that all shareholders who have already tendered their shares will receive the increased offer.
The additional cash component of the deal will be paid using Yamana's existing debt facilities.
Northern Orion's board of directors still support the merger with Yamana, subject to Yamana's acquisition of Meridian.
Northern Orion's share price range during the past week: between $5.75 and $6.57; 52-week high: $6.53; 52-week low: $3.85.