North Queensland Metals (ASX:NQM) has been advised that Heemskirk Consolidated Ltd (ASX:HSK) will drop its takeover offer for the gold producer on 10 September.
Heemskirk says North Queensland Metals shareholders that have already accepted its offer will retain their shares after its offer lapses.
Earlier this week North Queensland Metals received an unsolicited approach from a third party, adding to another rival offer from Conquest Mining.
On Wednesday North Queensland said such an offer would be made at a higher price and capable of being considered a superior proposal to the competing offers made by Heemskirk and Conquest.
North Queensland Metals booked a full year profit of $4.6 million for the year to the 30 June 2010.