Australian miner PanAust's board has accepted a $1.2 billion increased takeover offer from state-owned Chinese firm Guangdong Rising Asset Management.
GRAM increased its cash offer from $1.71 a share to $1.85, at the lower end of accountants EY's assessment on April 22 that the company was $1.84 to $2.04 a share.
The bid values the company at $1.2 billion, up from its initial $1.1 billion offer.
It was well below last year's $1.5 billion proposal, but that was non-binding.
GRAM already owns 24.3 per cent of PanAust and would likely have increased its ownership of the company anyway, without the board's approval.
PanAust produces copper and gold out of Laos but its chief development project is a highly rated Frieda River mine in Papua New Guinea that it bought from Glencore last year.
PanAust said given the bid was within E&Y's range it would recommend it.
GRAM had said the bid was its final offer.
PanAust's shares closed at $1.73, having traded at $1.225 before GRAM launched its first bid on March 30.
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