Chinese firm Zijin Mining Group has moved to take a bigger slice of Australia’s Phoenix Gold.

Zijin currently holds 8.9 per cent of Phoenix shares, but is looking to increase that to 17.9 per cent following the takeover deal.

It has offered to pay 10 cents per share for Phoenix, valuing it at $47 million.

Zijin says the deal hinges on a number of protections including no-shop, no-talk, no due diligence and a break free.

But Phoenix says it has engaged with Zijin over the weekend, and it will not recommend the proposed offer in its current form.

“In particular, the Phoenix Board determined that it was inappropriate, on the basis of Zijin’s current proposed offer, to limit its ability to solicit and facilitate a superior proposal that could deliver greater value to Phoenix shareholders,” the company said in a statement to the stock exchange.

Phoenix will meet this week to vote on a different deal, which could see Evolution Mining increase its share in the company to 19.9 per cent with a $9 million investment.

Phoenix says that given the market sensitivity of Zijin’s offer and its potential effect on control of the company, the board may adjourn the general meeting of Phoenix shareholders.