Shares in Bonaparte Diamonds have risen as a second suitor, Queensland company Union Resources, enters the takeover battle.
West Perth-based Bonaparte is already the subject of a takeover bid by Minemakers, but a statement from Union said that offer held little value for the priority development of a key phosphate project.
Bonaparte is currently exploring for phosphate off the Namibian coast.
"Union feels compelled to make this offer as a consequence of uncertainties cause by the takeover bid made for BON (Bonaparte) by Minemakers Ltd," the statement said.
Earlier this month, Bonaparte directors recommended shareholders accept the Minemakers offer in the absence of a superior proposal.
Minemakers is offering one of its shares for every 10 Bonaparte shares held.
Minemakers today announced it had increased its stake in Bonaparte Diamonds to 23.8 per cent.
Union said it was finalising terms for the bid, which will be announced next week.
Shares in Bonaparte rose 0.5 cents or 10 per cent to 5.5 cents at 13:18 AEST.
