Ecuador-focused miner SolGold (LON: SOLG) has opened the door to a takeover from China’s Jiangxi Copper (JCC), which returned with a higher all-cash proposal valuing the company at about £842 million ($1.13 billion).

JCC, already SolGold’s largest shareholder with 12.2%, first approached the company in November 23 with a non-binding proposal that was rejected. On November 28, it came back with a 26-pence per share offer that the board also rebuffed. The latest 28-pence bid marks JCC’s third attempt and lifts the price by 7.7%.

SolGold said it would recommend shareholders accept the fresh bid if JCC tables it as a firm offer on those terms.

A successful acquisition would hand JCC full control of SolGold’s flagship Cascabel copper-gold project in northern Ecuador, one of South America’s largest undeveloped copper-gold resources.

The new bid comes as copper assets attract intense interest on expectations of a looming supply crunch driven by electrification. The heightened demand has sparked major dealmaking attempts, including BHP’s unsuccessful runs at Anglo American (LON: AAL).

Investors unsure

Despite the sweetened proposal, SolGold’s shares fell more than 10% to 25.1 pence on Friday. They were last trading at 25.75p, still below the bid price, as investors show caution toward large mining deals.

The offer still faces Chinese regulatory approval for outbound investment, a process JCC has started but one that has become more complex under tighter scrutiny in Beijing.

BHP (ASX: BHP) and Newmont (NYSE: NEM), which each own about 10% of SolGold, showed acquisition interest five years ago, then looked elsewhere after funding disputes and changes in scope at Cascabel.

JCC, which operates in countries including Peru, Kazakhstan and Zambia, has support from major SolGold shareholders BHP, Newmont and Maxit Capital, which together hold 40.7%.