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Tietto Minerals has recommended shareholders accept an unsolicited takeover bid ASX-listed Chinese gold mining major Zhaojin launched earlier this month.

Australian-based Tietto, of which Zhaojin is a key shareholder, previously urged its shareholders to “take no action” on the $733 million offer until it could be properly evaluated.

The offer, which priced Tietto at $0.68 per share, was a 17 per cent jump on a previous offer Zhaojin made in October 2023 which priced the company at $0.58 per share.

The $629 million October offer was swiftly declined, with Tietto saying in a statement at the time that it “materially undervalues the company”.

Now two major shareholders who had indicated they would not participate in the offer when it was at $0.58 have accepted the increased offer.

This latest development brings Zhaojin’s voting power in Tietto in excess of 42 per cent, which Tietto said may be enough to control the company.

“The Tietto directors are concerned that Zhaojin may now be in a position to control the composition of Tietto’s board, and therefore effectively control the company’s future financial and operating policies,” Tietto chair Francis Harper said in a statement.

Grant Thornton recently valued Tietto between $0.79–0.93 per share thanks to a recent jump in gold prices.

While the Zhaojin offer remains below what Harper described as a “fair and reasonable” offer, he said the directors now consider the risks associated with continuing to hold Tietto shares outweigh the advantages.

He urged Tietto shareholders to consider either accepting into the offer without delay, or otherwise selling their shares on the ASX.

“As a result of the above developments, all of the Tietto directors that own or control Tietto shares now intend to either accept into the offer, or otherwise sell their Tietto shares on the ASX if the prevailing market price is not materially different to the offer price,” Harper said.

Tietto’s flagship Abujar gold project in western Côte d’Ivoire is West Africa’s newest gold mine, with first gold poured in January 2023.

Abujar has a mineral resource of 3.83 million ounces (Moz) of gold and ore reserves of 1.69Moz.