Shanxi Donghui Coal Coking & Chemicals Group has proposed a A$160m ($144.45m) off-market takeover bid to acquire Inova Resources and has offered to develop Inova's mines.

The offer represents a 55% premium to the three-month volume-weighted average price of Inova’s shares on the Australian Stock Exchange, and a 29% premium to the share price on 20 August.

Inova’s largest stakeholder Turquoise Hill Resources has entered into a pre-bid acceptance deed (PBAD) through its subsidiary to offload 14.9% of 56.2% ownership in Inova at cash per share price of 22cents.

Shanxi Donghui chairman Zhang Yaping said, "Shanxi Donghui looks forward to progressing the development of Inova’s mines and growth projects and managing the inherent risks involved. We believe our offer provides Inova shareholders with a full and fair risk-free cash premium for their investment."

The company’s takeover proposal is subject a series of conditions, including a 51% minimum acceptance condition, and regulatory approval from both the Australian and Chinese authorities.

Inova owns the Osborne copper/gold mine, as well as the Mount Elliott copper/gold project and the Merlin molybdenum project, in Queensland.