However, the market was concerned about what Iluka stands to gain from the takeover, dropping its shares 10c to $4.40.

Iluka launched the $12.6 million takeover offer last night at a 41% premium on BeMaX’s closing price yesterday of 17c per share and a 31% premium to the weighted average of BeMaX’s shares in the past three months.

BeMaX has several interests in the Murray Basin including a 50% interest and operatorship of the BIP Mineral Sands joint venture, which owns the Gingko titanium minerals and zircon deposit 120km north of Mildura in New South Wales.

Iluka managing director Malcolm Macpherson said the company was making the offer to supplement its existing explorations assets in the Murray Basin region.

“Over the past four years, Iluka has accumulated the largest base of explorations assets in the Murray Basin. The acquisition of the BeMaX would increase Iluka’s resource base in the New South Wales section of the Basin.”

He said the offer represented a full and fair price.