Xanadu Mines (ASX:XAM) signed a bid implementation agreement with Bastion Mining under which the latter will make an off-market takeover offer for the Australian listed mining company for AU$0.08 cash per share, according to a Monday filing with the Australian bourse.

Bastion represents a consortium of Singaporean private entity Boroo and Xanadu director Ganbayar Lkhagvasuren. The offer is a 57% premium to Xanadu's closing price on May 16 and implies a total equity value of AU$160 million, the filing stated.

Under the terms of the offer, Bastion will subscribe for 286.8 million shares in Xanadu at AU$0.06 apiece, representing a cash injection of AU$17.2 million to fund the company's share of joint venture cash calls, working capital, and associated corporate costs, the filing stated.

The takeover board committee formed by Xanadu unanimously backs the offer.

Each member of the committee, with a combined ownership of 1.86% of the company, plans to accept the offer. CAAF, Xanadu's largest independent shareholder with a relevant interest of 11.85%, also intends to vote for the bid, the filing stated.

Bastion needs to acquire an interest of at least 50.1% in Xanadu before declaring the offer unconditional.