Under the terms of the friendly off-market cash offer, Glory shareholders will receive A17c per fully paid ordinary share, representings a 42% premium to the company’s last closing price.

Eldorado also proposes to acquire all the issued options of Glory for total consideration of about $1.8 million.

Eldorado cited Glory’s flagship Sapes gold project in Thrace, Greece as a primary focus of the arrangement.

“The acquisition of the Sapes project reaffirms our belief in the geologic potential of Thrace, which, when realised, will bring significant benefits to the region as these deposits are developed in a socially and environmentally responsible manner,” Eldorado chief executive Paul Wright said.

“The Sapes project is a complementary asset to our existing portfolio and will benefit from synergies with Perama Hill and our other Greek assets.”

Glory issued a statement today encouraging shareholders to accept the offer.

“The board has unanimously resolved to recommend the offer to Glory shareholders in the absence of a superior proposal,” it said.

“All members of the Glory board have advised they intend to accept the offer with respect to their own shareholdings, in the absence of a superior proposal.”

Glory’s second-largest shareholder, Cape Lambert Resources, also welcomed the offer at the 17c/share price, noting a decision by Cape Lambert leadership to de-risk various takeover milestones related to Sapes.

Pursuant to the terms of the sale of Sapes, Glory must pay Cape Lambert $10 million in cash or shares in addition to the previously agreed consideration of $32.5 million in cash and 16 million Glory shares.

However, as a condition of the takeover, Cape Lambert will accept a $6.5 million upfront payment from Eldorado instead of the staged $10 million payment.

Acceptance of the offer in respect of all Glory shares held by Cape Lambert will result in Cape Lambert receiving $12.7 million including the $6.5 million Sapes payment.

Sapes has a resource of 830,000 ounces of gold and reserves of 637,000oz.

Shares in were last trading 33.3% higher at 16c while Cape Lambert was 3.8% up at 13.5c.