Shares of Australian diversified miner Western Desert Resources Ltd surged to a three-month high on Tuesday as the Northern Territory gold, iron ore and copper explorer announced it has received a A$435 million ($457 million) takeover bid from the Meijin Energy Group of China.

The A$1.08 per share offer, an uptick of 26 per cent to Western Desert's last closing price, prompted shares to jump 10 cents at 95.5 cents at 1448 AEST. In mid-August, Western Desert shares were at 60.5 cents.

Before the announcement of the offer and before the company went into a trading halt, its last sale price was $0.85 per share.

An iron ore development company, Western Desert, fully controls the Roper Bar project in the Northern Territory, which it had pegged to commence production by mid-2013. It likewise has interests in copper, gold, uranium, nickel, platinum, rare earths, phosphate and uranium assets.

"This offer from a major Chinese corporation represents excellent value for shareholders," Western Desert Chairman Rick Allert said in a statement.

The takeover bid, according to industry observers, could also herald China's renewed appetite for mining acquisitions as shares prices of mining firms plummet because of the dropping prices of commodities in the world market.

"After receiving appropriate government approvals for our proposal, I am looking forward to the development of the Roper Bar Iron Ore Project in the Northern Territory," Junliang Yao, Meijin chairman, said in a statement. "This is a great resource and will fit into Meijin's long-term strategy in Australia and we would like to see the resource developed to be the flagship project of the Northern Territory," he added.

The board of Western Desert Resources has recommended Meijin's proposal in the absence of a superior bid. It is, however, still subject to the findings of an independent expert.

Meijin has interests in coal mining, coke production and steel making. It is currently developing a 4.2 billion tonne coal project in the Galilee basin in Queensland state.