(REUTERS) -- Australian nickel producer Panoramic Resources Ltd made a hostile bid for the stake that it does not already own in Magma Metals Ltd , valuing the company at about A$40 million ($43.09 million).

Perth-based Panoramic, which also owns and operates copper and gold projects, is eyeing Magma's platinum-palladium-copper-nickel Thunder Bay North Project in northwest Ontario, Canada.

Panoramic said it will offer two of its shares for 17 Magma shares. Magma said it will advise its shareholders once it receives the bid statement and analyzes it.

The offer values Magma at 14.94 Australian cents per share, a premium of 87 percent to the stock's Thursday close on the Australian Stock Exchange.

Panoramic, already the second-largest Magma shareholder with a 9.34 percent stake, said the offer was subject to Magma not spinning off its West Australian gold projects.

Magma had said last year that an initial public offering of the project will be launched in the first half of this year.

Magma shares, which closed at 13.5 Australian cents on Friday on the Australian Stock Exchange, were up 88 percent on the Toronto Stock Exchange at 16 Canadian cents on Friday.

Panoramic shares closed at A$1.26 on the Australian Stock Exchange.