News: ESS UPDATE 1-Australia's Develop Global to acquire Essential Metals for $102 mln

(Adds details of target's acceptance, offer price, Mineral Resources shareholding)

Develop Global (DVP) , a base metals explorer backed by lithium producer Mineral Resources (MIN) , on Monday proposed to acquire Australian lithium developer Essential Metals (ESS) in a share-based deal worth A$152.6 million ($101.60 million).

Essential said its board had unanimously recommended the deal in the absence of a superior proposal.

The target's shares rose 19% to 49.5 Australian cents in early trading, which compares to the offer price of 56 Australian cents based on Develop's closing price on Friday.

Mineral Resources, which also produces iron ore and offers mining services, had taken a top stake in Essential in April when it rejected a takeover offer from a lithium producing joint venture owned by Tianqi Lithium 002466.SZ and IGO (IGO) .

Essential had been looking for partners to help it fund its prospective Pioneer Dome lithium project in the southwest of Western Australia state, which is approximately 100 km (62 miles) from Mineral Resources' Mt Marion operations.

Mineral Resources is the second-largest shareholder in Develop with a 12.87% stake. Develop's biggest shareholder is mining executive Bill Beament, who has a 19.42% stake, having added a 6% stake to his holding for A$7.479 million on May 18.($1 = 1.5020 Australian dollars)