• Shares of Australia's Zuleika Gold rise as much as 20% to A$0.036, their highest point since May 19

• The gold explorer says it will merge with CZR Resources

via recommended takeover offer for Zuleika

• Company says under the offer, Zuleika shareholders will receive 0.1742 CZR shares for each Zuleika share held

• Independent Zuleika board unanimously recommends shareholders accept the offer - ZAG

• Adds the deal values Zuleika at A$44.8 million ($30.81 million)

• ZAG down 28.3%, YTD

($1 = 1.4541 Australian dollars)

(Reporting by Keshav Singh Chundawat in Bengaluru)