Shenzhen Zhongjin Lingnan Nonfemet Co is planning to buy out minority investors of Perilya Ltd in a deal valuing the Australian mining company at A$269.3 million ($243.9 million).

Zhongjin Lingnan,China's third-biggest zinc producer, already owns 53.4 percent of Perilya which operates base and precious-metal mines inAustraliaand theDominican Republic.

It is offering 35 Australian cents per share.

The company said that the offering price represents a 59 percent premium on the closing price of Perilya's shares on Saturday, which also represents a 109 percent premium to its volume-weighted average price for the past three months.

The price proposed by Zhongjin is an opportunity for Perilya is an attractive premium opportunity for shareholders in a challenging global economic environment, according to a statement by Perilya.

Perilya said the company directors would fully support the proposal if the independent report proved the deal would bring the best profits to minority shareholders and no other offers emerged.

In addition, the deal still needs to be approved by both Australian and Chinese regulatory bdies.

Zhongjin Lingnan started buying shares in Perilya in early 2009.

Perilya said a meeting would be held for shareholders to vote on the proposal in December.