AIM listed mining exploration company Mariana Resources is to be taken over by streaming firm Sandstorm Gold.
Sandstorm, who already own a 7% stake in the company, will acquire the rest of the capital and merge into a new combined entity.
Shares for Mariana rose from 59.01p on Wednesday, to 109.71p, with the company valued at £167 million, a premium of 84% on the night before.
If the takeover is successful Mariana shareholders will own 19% of the new and larger entity.
John Horsburgh, non-executive chairman of Mariana said: “The independent directors recommend that Mariana Shareholders approve this combination.
“The combination with a company such as Sandstorm not only de-risks Mariana’s exposure as a single development/production asset company but provides a stronger diverse platform and ability to finance the development of the 30% owned high grade gold-copper discovery at Hot Maden in Turkey.
“The terms of the combination represent a significant and attractive premium to the market price of Mariana Shares.”