Sydney-based Kingsgate Consolidated Ltd has rejected the "opportunistic and inadequate" takeover offer from Singapore-based Northern Gulf Petroleum International Ltd.
Northern Gulf last month offered to buy 50.1% of Kingsgate for 4.2 Australian cents a share.
Kingsgate chairman Ross Smyth-Kirk said its board of directors has unanimously recommended shareholders to reject the offer, saying it was inadequate and unsolicited.
"The offer is inadequate, opportunistic and unsolicited," he said.
On Sept 16, Northern Gulf offered to buy 50.1% of Kingsgate at only 4.2 Australian cents a share, well below the price of 41 cents at the time the shares were suspended.
Chatchai Yenbamroong, executive director of subsidiary Northern Gulf Oil (Thailand) Ltd declined to give any comment on the issue.
Kingsgate is a gold and silver mining, development and exploration company based in Sydney, Australia.
It is the parent company of Akara Resources Plc, which operates the Chatree gold mine in Pichit province, Thailand.
Kingsgate also has an advanced development in the Nueva Esperanza Gold and Silver Project, located in the highly prospective Maricunga gold and silver belt in Chile.
It suffered a major setback this year when the Thai government announced on May 10 that the Chatree mine must cease operations by Dec 31, 2016.
The government over the past few years has received complaints from villagers and non-governmental organisations near the Chatree mine that public health was being adversely affected by the mining.
Akara said it will seek a one-month extension as the company believes there is more gold in the claim.
According to the Thai law, Akara can ask for an extension of up to one month, which it plans on sending the Primary Industries and Mines Department soon.
Akara holds seven licences to continue mining through 2028.
The company's exploration information estimated up to 40 million tonnes of golden ore underground. It has an average mining capacity of 6.2 million tonnes a year, he said.
Akara estimates ceasing its mining business in Phichit would mean losses of 39 billion baht. The cessation order also raises concerns from its creditor, as Akara has put up buildings, land and other assets as collateral for a loan.
The firm is set to evaluate its operations and results earnings for its annual report.
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