Mineral Deposits Ltd. recommended that shareholders reject Eramet's new takeover offer of A$1.75 per share, saying it still undervalues the company.
The company said June 14 that the offer is still below its independent expert's value range of between A$2.04 per share and A$2.52 per share and remains conditional.
"The board believes the revised offer continues to undervalue [Mineral Deposits's] shares, where its joint venture assets are operating at or near current capacity as the mineral sands commodity cycle continues to improve," Chairman Nicholas Limb said.
The revised offer will remain open until July 13 unless extended.
Eramet's increased offer values Mineral Deposits at about A$344.7 million, compared to the A$1.46 per share offer in April that valued the company at A$291 million.
Mineral Deposits is Eramet's partner in the TiZir Ltd. joint venture, which operates an integrated mineral sands business holding titanium dioxide and zircon assets in Senegal and Norway, on a 50/50 basis.