"Goldcorp Inc. (G-T42.590.451.07%) says it's raising its offer for Canplats Resources Corp. (CPQ-X4.85----%) to the equivalent of $254-million, to match a rival bid from Minera Penmont.

Under a friendly takeover agreement with Canplats, Goldcorp had until Dec. 31 to match the bid, which was the equivalent of $4.40 per share, including $4.20 cash and a share of a new company with a notional value of 20 cents per share.

Goldcorp said that its agreement to match the rival offer effectively extinguishes the Penmont offer.

Canplats shares soared in heavy trading Wednesday after the Penmont offer was announced.

Canplats stock closed at $4.85, up $1.70 or 54 per cent from the previous close and above either rivals' bids, suggesting investors expect a battle for the company.

Canplats' main focus is the development of the Camino Rojo discovery in Mexico. The Represa deposit at Camino Rojo hosts 3.44 million ounces of gold and 60.7 million ounces of silver on a measured and indicated resources basis.

Penmont, jointly owned by Fresnillo PLC and Newmont Mining Corp. (NEM-T4.590.030.66%) , owns the operating Herradura mine and the nearly complete Soledad and Dipolos project, both located in Sonora, Mexico.

Goldcorp also has a mine in the area, 50 kilometres northwest of Camino Rojo. The company said last month that it expected strong synergies between Camino Rojo and Goldcorp's Penasquito mine."