Kenmare Resources shares rose 36% after it confirmed a non-binding cash takeover proposal from International Resources Holdings RSC Ltd (IRH).
The jump values the company at about £220 million.
Kenmare, which is listed in London and Dublin, mines ilmenite, rutile and zircon at its Moma operation in Mozambique.
It is the world's fourth-largest producer of titanium feedstocks, which are mainly used to make titanium dioxide, the white pigment in paints and plastics.
Kenmare said it had noted press speculation and that discussions with IRH are ongoing.
It added that there is no certainty a firm offer will follow, and no price has been disclosed.
IRH is an Abu Dhabi mining and trading group with interests across Africa, and its board is headed by Sheikh Tahnoon bin Zayed Al Nahyan, a brother of the UAE president, the Irish Times reported.
The approach follows a failed bid in 2025 from Oryx Global Partners, an Abu Dhabi private equity firm, and former managing director Michael Carvill.
Kenmare's board rejected their opening proposal of £473 million as too low.
The consortium withdrew in June 2025 after the two sides failed to agree a valuation.
