Australian copper junior MOD Resources (LON:MOD) rejected on Monday fellow rival Sandfire Resources' (ASX:SFR) A$88 million ($63m) all-share takeover offer saying it undervalued the firm and its assets.
The exploration and development company, which focuses on copper projects in the central and western Kalahari Copper Belt in Botswana, noted it was willing to engage with its suitor if it came back with a "compelling price".
MOD will raise A$15 million via a share placement and rights issue, to advance its T3 copper project in Botswana.MOD also said it would raise about A$15 million via a share placement and rights issue, with the majority of the proceeds to be used to advance the T3 copper project in Botswana towards production and defining additional resources within the surrounding project area.
The junior miner noted it's in advanced discussions with a number of parties on funding, which has enhanced its view of the potential that the T3 project offers.
The Perth-based miner, which also operates a gold project in New Zealand, said that the T3 project lies in a largely under-explored region with "potential for a long-life high-margin, open pit copper mine with significant exploration upside".
Sandfire's offer comes as it looks for a new copper operation to replace its flagship DeGrussa copper-gold mine in Western Australia, which is set to close by 2022. The company also has a project in Montana in North America