Australia's second largest listed gold miner Evolution Mining appears close to finalising a protracted takeover bid for smaller rival Phoenix Gold.
Both companies announced on Friday that their boards have reached an agreement after Evolution increased the cash component of its takeover offer.
The extra 0.75 cents a share to $0.0675 alongside its original scrip offer of 0.06 Evolution shares for each Phoenix share has won over the target's board.
Phoenix is now urging its shareholders to accept the new deal, which gives the company a market value of $74 million, in the absence of a superior offer.
This breakthrough for Evolution follows a bidding war with Chinese company Zijin Mining since August.
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Zijin's 10 cents share cash bid for the Western Australian gold miner lapsed in September.
A joint statement from Evolution and Phoenix released on Friday says the increased cash component adds certainty of value to Phoenix shareholders.
"By accepting the revised offer, Phoenix shareholders will become part of a larger, leading Australian gold company with multiple operating assets located throughout Australia and attractive growth prospects," the statement said.
If Evolution gains 90 per cent of Phoenix shares, it is entitled to pursue compulsory acquisition of all remaining Phoenix shares.
Shareholders have until December 15 to accept the revised offer.
At 1450 AEDT, Evolution's share price rose two cents, or 1.48 per cent, at $1.375, while Phoenix's share price climbed 0.5 cents or 3.57 per cent, to 14.5 cents.
