Shares in the junior have had a run in morning trade on the back of the offer by Australia Conglin International Investment Group

A trading and investment company, Conglin currently owns a 19.8% stake in Orion and believes Orion would benefit significantly from its operational expertise in the gold and rare earths sector.

It is also a wholly owned subsidiary of Inner Mongolia Huachen Industry Company, one of the major coking coal and iron ore resource suppliers for major Chinese conglomerates BaoSteel Group and Ansteel (Anshan Iron and Steel Group Corporation).

The offer, of 16c per share, has been unanimously recommended by Orion directors, who intend to accept the bid in the absence of a superior proposal.

Metallica Minerals, Orion’s third largest shareholder with a 15.6% stake, has already indicated it intends accepting the bid.

The offer represents a 122.2% premium to Orion’s closing share price yesterday of 7.2c and an 83.7% premium to its one month volume weighted average price.

However, it is conditional on Conglin becoming entitled to at least 50% of Orion’s issued share capital.

Both parties have also agreed on appropriate break fees and exclusivity provisions.

The offer is due to close on Monday, July 9 with the bidder’s statement to be mailed to Orion shareholders next Friday.

Shares in Orion Metals were up nearly 102% or 7.3c in morning trade to 14.5c.