Avoca Resources Ltd., which is taking over its rival company Dioro Exploration, has raised its proposed bid. Since April, the company has been thinking about acquiring its rival, but now Ramelius Resources Ltd. has come into a battle with Avoca.

In August, Dioro declared its then 75.7 cents per share bid as final, but increased it after Ramelius came back with an increased scrip offer worth $1.155 per share. And now Avoca, as a counteroffer, has given a cash and scrip bid worth $1.25 per share.

Dioro Shares declined by 0.4 percent to A$1.235 and Avoca also fell 0.5 percent to A$1.835 whereas Ramelius increased 0.9 percent to 56 cents.

"Last time we made a final offer we also had the recommendation of the Dioro board to accept our offer and then Ramelius came along", Avoca chairman Robert Reynolds told AAP on Tuesday.

Dioro owns 49 percent stake in the Frog’s Leg gold mine in Western Australia state which produced 22,022 ounces of gold in the three months ended Nov. 30.