Takeover target Dioro Exploration has confirmed it has held talks with third parties that may result in a counter offer to Avoca Resources' bid.
In a statement, Dioro said it has been in discussions with a number of third parties, both local and overseas, regarding potential transactions.
It added that the confidential talks started before Avoca launched its all-scrip bid last month.
Avoca is offering one of its shares for every 2.82 Dioro shares.
The comment follows an article in The West Australian newspaper today that Dioro's joint venture partner in the Frog Leg gold mine, Canada's La Mancha, may make a takeover bid.
"Ongoing discussions with various parties may potentially result in a counter offer to the Avoca offer or an offer to acquire all or a significant portion of Dioro's assets," Dioro said today.
"Such an offer or counter offer could include cash or securities in the third party.
"While your Directors will evaluate these opportunities, there is no guarantee that any alternative offer will eventuate.
"Dioro confirms that it has not received any offer from any third party at this stage."
Shares in Dioro shed 1.5 cents to 64.5c at 14:09 AEST.
