(Reuters) - Africa-focused explorer Nzuri Copper Ltd said on Wednesday it had received a A$109.5 million ($78.64 million) takeover bid from a unit of China's Chengtun Mining
Group Co Ltd, and would recommended the offer to its shareholders.
Chengtun has offered A$0.37 in cash for each share in Nzuri, the company said in a statement. The offer represents a 42.3 percent premium to Nzuri's last closing price of A$0.26.
Nzuri said that Chengtun's activities in the Democratic Republic of Congo had the potential for synergies with its own Kalongwe Copper-Cobalt Project.
Chengtun also agreed to provide Nzuri a secured loan of A$5 million ($3.59 million), the company said.
Nzuri's shares jumped nearly 27 percent to A$0.33 following the announcement.
(Reporting by Ambar Warrick in Bengaluru; Editing by Shreejay Sinha)
