Takeover target Dioro Exploration says it has received a proposal from Canada's Northgate Minerals Corporation for the purchase of its 49 per cent stake in the Frog's Leg gold mine.
"If a proposal is accepted by the Dioro directors from Northgate, it would be subject to the approval of 50.1 per cent of Dioro's shareholders in (a) general meeting," Dioro said in a statement on Friday.
Dioro's largest shareholder Avoca Resources is unlikely to accept such a proposal - given it is attempting to takeover the gold miner.
Avoca's all-scrip, $68.5 million offer is scheduled to close on Tuesday.
"Dioro directors have been assessing the value of the (Northgate) proposal on Dioro and whether or not they can recommend the proposal over Avoca's current offer," Dioro said.
"They have requested advice from their appropriate advisers and are in the process of considering that advice."
Frog's Leg is 51 per cent owned by Canada's La Mancha Resources.
Shares in Dioro were steady at 73.5 cents while Avoca's shares were up half a cent at $1.72.
