TSX-listed gold producer Anaconda Mining will offer shareholders in TSX-V-listed explorer Maritime Resources about 28% more for their shares, the company announced on Wednesday.

Anaconda will increase its hostile offer from 0.39 to 0.50 of a common share for each Maritime share, provided that Maritime does not conclude its proposed private placement as announced in June.

Under the improved offer, Maritime shareholders would own about 27% of Anaconda, if accepted.

Anaconda said it believed the new offer consideration was a fair and full offer to the Maritime shareholders.

“The offer represents $0.21 per Maritime share and a premium of about 108%, based on the 20-day volume-weighted average prices of the Maritime shares on the TSX-V and the Anaconda shares on the TSX, immediately preceding the date Anaconda announced its intention to make an offer to Maritime shareholders on March 19,” the company said.

The increased offer also represents a premium of about 82.5% based on the closing price of the Maritime shares on the TSX-V and the Anaconda shares on the TSX on July 3.

Shares in Labrador-focused gold exploration junior leapt 25% on the news to trade at $0.125 a share.

Anaconda has taken the increased offer directly to Maritime shareholders, after the target company’s management and board of directors declined to engage in “constructive dialogue”.

Anaconda slammed Maritime’s proposed private placement as a “defensive tactic” to its takeover bid, which is “intended to place discounted Maritime shares in the hands of a few investors”.

"While Maritime management has not been willing to engage in any constructive dialogue towards a business combination, they do appear willing to sell about 20% of the company for less than $0.10 apiece, while shareholders face the prospect of virtually unlimited dilution for the uncertain possibility of production at an unknown time in the future.”

“Our improved offer allows Maritime shareholders to benefit from a compelling purchase premium while avoiding significant unwarranted dilution from the proposed private placement. Maritime shareholders will also be able to participate in the building of an emerging Atlantic Canadian gold producer with a significant growth profile and a management team that is invested and has demonstrated the ability to execute on its business plans,” Anaconda president and CEO Dustin Angelo said in a statement.

Anaconda’s offer will expire on July 27.

Maritime holds the 51.7 km² Green Bay property, which hosts the past producing Hammerdown gold mine and the nearby Orion gold deposit, as well as the Lochinvar base-precious metals deposit.

The Green Bay gold property, near Springdale, Newfoundland, contains more than 400 000 oz of gold in the measured and indicated category and more than 600 000 ozin the inferred category, both at a 3 g/t cut-off grade.