Takeover target Dioro Exploration has urged its shareholders to take no action on a sweetened $71 million takeover bid by Avoca Resources.
The directors of Dioro told shareholders in a statement that it will review the supplementary bidder's statement and then make a recommendation. So far Dioro has told shareholders to reject Avoca's offer.
Yesterday, Avoca increases its all-scrip offer of one of its shares for every 2.4 Dioro shares, up from 2.82 shares.
The increase now valued Dioro at around $71 million based on Avoca's share price last week.
Today, Dioro also pointed out that since Avoca opened its offer in May, the suitor had so far received less than 1 per cent of acceptances from Dioro's general shareholders.
At the start of the takeover, Avoca had secured a collective 14.95 per cent from two major Dioro shareholders.
In total, Avoca has a 15.79 per cent relevant interest in Dioro.
Shares in Dioro were down one cent to 71c while shares in Avoca slipped 3.5c to $1.705.
Both companies operate gold mines in Western Australia.