Echo Resources said that it recommends shareholders accept an offer from gold miner Northern Star at 33¢ a share in cash. 

The recommendation was made unanimously by the independent directors in the absence of a superior proposal. 

Echo said in its target statement that it deosn't have the capital to fully develop its existing assets and that the offer has been made at a "compelling premium" to its historical trading price. 

Echo shares advanced 1.5 per cent to 33¢ by the close on Tuesday.