News: AZS UPDATE 1-Australian lithium miner Azure agrees to $1 bln takeover bid from Chile's SQM

(Adds further details on deal in paragraphs 2-5)

Oct 26 (Reuters) - Australia's Azure Minerals Ltd (AZS) said on Thursday it had agreed to a takeover offer from Chilean mining giant Sociedad Química y Minera de Chile (SQM) SQMA.SN , in a deal implying an equity value of A$1.63 billion ($1.03 billion) for the lithium producer.

Azure, which owns around 60% stake in the highly prospective Andover lithium project in Western Australia's Pilbara region, had previously rejected a buyout bid from SQM that valued the miner at A$901.4 million.

Under the new proposed deal, SQM agreed to acquire all of Azure's shares at an offer price of A$3.52 per share, a premium of 44.3% to the stock's last close of A$2.44 on Friday.

The world's second-biggest lithium chemicals maker, which is partnering with Australian conglomerate Wesfarmers (WES) to build the A$1.9 billion Mt Holland lithium hydroxide project in Western Australia, bought a 19.99% equity in Azure for A$20 million in March.

"Azure Board unanimously recommend that Azure shareholders support the transaction by voting in favour of the scheme... in the absence of a superior proposal," the company said in a statement. ($1 = 1.5898 Australian dollars)