Gold producer, Avoca Resources managed to raise its stake in takeover target Dioro Exploration to more than 44 per cent by the close of business yesterday, ending the four-month acquisition proposal.
Gold producer, Avoca Resources managed to raise its stake in takeover target Dioro Exploration to more than 44 per cent by the close of business yesterday, ending the four-month acquisition proposal.
Avoca chairman Robert Reynolds said the acceptance by most of Dioro's largest shareholders, including UK fund manager Baker Steel and La Mancha Resources Australia, clearly demonstrates that major and sophisticated investors considered the Avoca Offer (and the receipt of Avoca scrip) to be superior to the proposed Ramelius offer.
La Mancha is a Canadian listed gold company which operates the Frog's Leg gold mine in which it owns 51% and Dioro has a 49% stake.
"Importantly, Baker Steel and La Mancha Resources Australia did not accept Ramelius' inferior offer and neither will Avoca," Mr Reynolds said.
Full announcement below:
Avoca reaches 44.85% at close of Offer for Dioro
ASX200 gold producer, Avoca Resources Limited (ASX:AVO) is pleased to announce that its takeover offer for Dioro Exploration NL (ASX:DIO) closed at 5pm (Perth time) on Wednesday 19 August 2009, by which time its relevant interest in Dioro had reached 44.85%.
To the best of Avoca's knowledge, most of Dioro's larger shareholders (including, significantly both Baker Steel and La Mancha Resources Australia accepted Avoca's Offer.
Avoca Chairman Robert Reynolds said this clearly demonstrates that major and sophisticated investors considered the Avoca Offer (and the receipt of Avoca scrip) to be superior to the proposed Ramelius offer.
"Avoca would like to thank and welcome its new shareholders, who will now have the opportunity to be part of an ASX200 company with the credentials to become Australia's pre-eminent mid-tier gold producer."
Baker Steel is a specialist investment manager in gold and natural resources and La Mancha is a Canadian listed gold company which operates the Frog's Leg gold mine in which it owns 51% and Dioro has a 49% stake.
Importantly, Baker Steel and La Mancha Resources Australia did not accept Ramelius' inferior offer and neither will Avoca," Mr Reynolds said.
Launched on 14 April 2009, the Avoca takeover offer was open for approximately four months.
Pursuant to Listing Rule 3.3, Avoca advises that as at the end of the offer period, Avoca and its associates have a relevant interest in 44.85% of the fully paid ordinary shares in Dioro, and therefore that compulsory acquisition will not proceed.
As Dioro's major shareholder, Avoca intends to take an active interest in the affairs of Dioro.
