Phoenix Gold (ASX:PXG) has received an off-market takeover offer from Evolution Mining (ASX:EVN) that trumps an earlier bid from Zijin Mining Group Co., Ltd’s (SHA:601899, HKG:2899) current offer of A$0.10 per PXG share.
Evoluation's offer is for 0.06 EVN shares and A$0.06 cash for each Phoenix share that values PXG at about $56.4 million.
This represents a 20% premium to last sale price.
Shares in PXG last traded at $0.105 while EVN last traded at $1.00.
Evolution is the largest shareholder in PXG with a 19.8% interest.
The offer is subject to conditions including Australian Foreign Investment Review Board (FIRB) approval, completion of the La Mancha transaction, a number of other customary conditions and the spot price for gold not falling below A$1,250 per ounce.
Earlier this month, Phoenix recommended that shareholders take no action in relation to the Zijin bid, which was unsolicited and included conditions such as Zijin having to acquire 50.1% in PXG.
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