Resource company North Queensland Metals Ltd (NQM) said today that it is rejecting the takeover proposal of Conquest Mining Ltd, citing that its joint venture partner at the Pajingo gold mine site in Queensland, Heemskirk Consolidated Ltd offered a much superior bid.

NQM said that although Conquest upgraded its offer to a half of its share plus 15 cents for every NQM share held as against Heemskirk's offer of 1.2 of its shares for each NQM share held, the company said that the latter's offer was better at an implied value of 37.2 cents per share as compared to Conquest's offer which carried an implied value of 31.5 cents per share.

The takeover target said that the implied values were based on both suitors closing share prices on Friday at 31 cents and 33 cents respectively.

The company said that its board deliberations excluded founder and major shareholder Don Walker, in view of his agreement with Conquest's upgraded bid and with due respect to his 19.9 percent holdings in NQM.

Nevertheless the statement from the company said that, the NQM board made known their view that "the revised Conquest offer is inadequate and that the offer from Heemskirk is superior and they subsequently recommended that that NQM shareholders reject the Conquest offer and they continue to unanimously recommend the Heemskirk offer."

NQM said that Heemskirk's proposal pointed to the consolidated ownership of Pajingo while the bid offered by Conquest would "dilute NQM shareholders' effective interest in Pajingo to approximately 12 per cent."

As of 1208 AEST on Monday, NQM shares were trading at 30.5 cents, shedding some .5 cent or 1.61 percent from Friday's closing while Heemskirk stock were untraded at 31 cents with Conquest's steadying at 33 cents.