another article Two top proxy research and advisory firms, ISS Proxy Advisory Services and Glass Lewis & Co, have both recommended that shareholders in Capital Gold approve a merger with Canada's Gammon Gold, the firm said on Monday.
However, rival bidder Timmins Gold also scored some points of its own, announcing that Sprott Asset Management informed Timmins it will vote against the Gammon deal and plans to back the proposed tie-up with Timmins.
Sprott controls about 12,5% of Capital's outstanding shares, which represents the biggest single voting block based on current disclosures, Timmins said.
The vote on the Capital-Gammon transaction is scheduled for March 18.
Gammon agreed in October to pay 0,5209 one of its own shares and
,79 in cash for each Capital share, in a deal that received the backing of the Capital board.
However, Timmins argues that its proposal to exchange 2,27 of its own shares for each Capital share is actually a superior offer.
The company tried repeatedly to get the Capital board to negotiate a friendly deal, and eventually said last month it would take the offer straight to Capital shareholders.
All three firms have mines in Mexico - Capital owns the El Chanate mine and Timmins poured the first gold at its San Francisco mine in December 2009.
Gammon is currently operating the Ocampo mine, and said last week it expects to restart operations at its halted El Cubo mine in April, after reaching a new agreement with the local union.
Shares in Timmins Gold rose 6% on Monday morning, to C$2,47 apiece by 11:08 in Toronto. Capital was down 0,76%, at C$5,19 a share and Gammon declined 0,81%, to C$8,57 a share.