Intrepid launched a friendly one-for-three scrip offer in September that fell short of the 90% minimum acceptance condition when it closed on February 5.

Yesterday the two signed a new takeover implementation agreement on improved terms.

Intrepid will offer one share for every two AIC shares held in a reverse takeover.

AIC shareholders will wind up with 73% of the combined company.

The merged company will be led by AIC chairman and major shareholder Josef El-Raghy as chairman and newly appointed AIC managing director Aaron Colleran as MD and CEO.

Former AIC CEO and current director Brett Montgomery and Intrepid directors Richard Baumfield and Tony Wolfe will round out the board.

Intrepid had $13 million cash at the end of December, but it completed a 75c per share return of capital last week.

The combined company's key asset will be a 3200sq.km landholding in the Plutonic and Marymia region in Western Australia.

"I am very pleased that AIC and Intrepid have been able to re-engage and agree revised terms for combining the companies," El-Raghy said.

"This merger creates a strong platform for growth and delivers a dominant land position in the underexplored Plutonic and Marymia region."

The deal has the backing of both boards and it is expected it will be completed by early April.

AIC last traded at 16c, giving it a market capitalisation of $12 million, while at 34c, Intrepid was last valued at $4.7 million.