CZR Resources (ASX:CZR) received an unsolicited, confidential, nonbinding, and conditional proposal from the Robe River Iron Associates joint venture on Thursday to acquire its interest in the tenements in its Robe Mesa iron ore project in Western Australia for a cash consideration of AU$75 million, according to a Friday Australian bourse filing.

The bid is conditional upon successful due diligence, the negotiation of an asset sale and purchase agreement with Zanf the acquisition of its interest in the project, approval from CZR shareholders, and third-party and regulatory clearances.

CZR continues to recommend Fenix Resources' (ASX:FEX) bid, comprising a consideration of 0.98 Fenix shares for every CZR share held at an implied value of AU$0.30 per share, but it decided to engage with the joint venture.

The board concluded that the joint venture's offer is a potential competing proposal, which could be expected to lead to a superior proposal. However, it is considered incomplete, conditional, and non-binding in its current form.

The joint venture is also willing to consider providing an equivalent amount of debt funding to that available to CZR under the working capital loan provided by Fenix, as well as an amount equal to the break fee under the bid implementation agreement between Fenix and CZR.

Various units of Rio Tinto (ASX:RIO) hold a 53% interest in the joint venture, while Mitsui represents a 33% stake and Nippon Steel a 14% stake.

Shares of CzR Resources rose 6% in early trading on Friday.