(Reuters) - Australian copper miner Sandfire Resources NL sweetened its takeover offer for smaller rival MOD Resources Ltd on Tuesday, valuing it at A$167 million ($116.25 million) and enough to satisfy MOD's board.
Sandfire raised its offer to A$0.45 per MOD share, from A$0.38 a share that MOD had rejected in January as too low.
The new offer represents a 45% premium to MOD's last closing price on Monday.
MOD's board unanimously recommended Sandfire's new offer, months after it said it was willing to work with its larger rival to come to a compelling price.
Metal Tiger Plc, MOD's second-largest shareholder, also agreed to vote in favour of the scheme, Sandfire and MOD said in a joint statement.
Shareholders of Perth-based MOD who elect to receive the consideration in cash, will be subject to a cap of A$41.6 million.
If it crosses the cash cap, MOD shareholders will receive less than A$0.45 per share in cash with the remainder in Sandfire shares at A$6.78 a share.
($1 = 1.4366 Australian dollars)
(Reporting by Nikhil Kurian Nainan in Bengaluru; editing by Darren Schuettler and Subhranshu Sahu)
