Sandfire Resources has approached fellow ASX-listed metals miner MOD Resources about a potential takeover.

Sandfire said its ‘interest in exploring a potential combination of the two companies’ was on the basis of an offer worth 38 cents per MOD share.

That values MOD at about $94.5 million.

It said any transaction would be subject to due diligence and all necessary approvals, with no assurance that a transaction would materialise given the preliminary and non-binding nature of the approach.

MOD shares have lost about two thirds of their value over the past year and were worth 22 cents before entering a trading halt on Monday.