The Australia-based dual-listed coal miner accepted a sweetened $C1.60 per share bid from Mineralogy, a 13.5% premium to Mineralogy’s original offer price of $1.41 per share which the company rejected on numerous occasions.

Mineralogy, which is backed by billionaire Clive Palmer, owns a 14% stake in the coal miner and has extended its offer to December 15, 2008.

“Over the past two months, the board has thoroughly evaluated a full range of alternatives to Mineralogy’s initial offer with the assistance of Waratah’s financial and legal advisors,” Waratah chairman Nicholas Mather said.

“After further discussions with Mineralogy, the board is recommending that shareholders tender to the amended offer.”

Mather added that the amended offer price was 13.5% higher than Mineralogy’s original offer price of $C1.41 and a 28% premium to Waratah’s closing price on the TSX Venture Exchange on Friday.

The two companies have announced that they have entered into a definitive support agreement in connection with the revised offer.

Waratah has been seeking a partner to develop a new 25 million tonne per annum coal mine, 500km of rail and a new port, worth $A5.3 billion, in the Galilee Basin in Queensland.

Waratah has previously said the project would be one of the largest thermal coal projects in Australia.

Waratah Coal, which listed on the Australian Securities Exchange in November, was unchanged at $A1.30 in morning trade.