Two junior miners are urging shareholders to approve all-cash takeover deals with their biggest shareholders.

Nkwe Platinum (ASX:NKP) has reached an agreement with China’s Zijin Mining Group, which already owns 60.47 per cent, for an all-cash takeover offer 25 per cent higher than its initial bid.

The news sent shares up over 35 per cent this morning to 9.5c just after the opening bell.

Junior coal miner Kangaroo Resources (ASX:KRL), meanwhile, has received an offer that values the company at nearly 70 per cent more than its last closing share price.

This sent Kangaroo’s share price up about 52 per cent to 13.5c.

Kangaroo Resources (ASX:KRL) shares over the past year.
Kangaroo Resources (ASX:KRL) shares over the past year.

Nkwe has been in talks with Zijin since March, when the suitor tabled an 8c-per-share offer that sent shares up 140 per cent.

Zijin is now offering 10c-per-share cash – a nearly 43 per cent premium to Thursday’s closing price of Nkwe shares.

Not surprisingly the company’s directors have unanimously recommended shareholders take the deal if a better offer doesn’t come along.

Nkwe was reinstated to trading in November last year after a 12-month hiatus.

The company was able to resume trading after the South African government finally lifted the suspension of mining rights over its flagship Garatau project.

“The independent directors consider that the all-cash certainty is attractive for Nkwe shareholders given the future risks and uncertainties associated with Nkwe’s activities in South Africa,” director Richard O’Shannassy said.

Meanwhile, Kangaroo was forced to reveal it was the target of a potential takeover by its biggest shareholder in May after shares shot up 57 per cent.

The company is now unanimously recommending a 15c-per-share cash offer from PT Bayan Resources, Tbk, which currently owns 56.05 per cent.

The tie-up will be done by way of a scheme implementation deed that needs to be approved by an Australian court.

It is also still subject to an independent expert determining that it is in the best interests of the other shareholders.

Perth-based Kangaroo has interests in 14 coal concessions in Indonesia and one exploration lease in Queensland.