Intrepid's shares are flying after launching a takeover for gold explorer A1C

Intrepid Mines shares are up 25 per cent this morning after launching a takeover offer for gold play A1C Resources.

The tie-up could result in a cashed-up play with dominant land position in an under-explored Western Australian copper and gold region.

Intrepid Mines soared 25 per cent to $1, while target AIC Resources moved ahead 15 per cent to 19.5c.

Intrepid (ASX:IAU) is offering one share for every three A1C (ASX:A1C) shares in an off-market takeover bid, with Intrepid and A1C shareholders to own 36 per cent and 64 per cent of the combined company, respectively.

If approved the new, well-funded company will hold 3200 sq km in the under-explored Plutonic and Marymia region near Meekatharra in WA.

Intrepid has also established a joint venture with explorer Ausgold, with Intrepid able to earn up to 80 per cent of the Doolgunna Station copper gold project near Meekatharra in WA.

Intrepid, which will return 75c per share to its shareholders in late October, held cash and cash equivalents of $14.4m at the end of June.

The Intrepid Mines(ASX:IAU) share price over the past year.

A1C is also in a strong cash position, with $7.8m in the bank at the end of June.

Earlier this month Intrepid finally struck a deal to offload its Zambian assets to Vulcan Copper for $US5m. In May, it missed a deadline to sell these projects to London-listed Weatherly International.