19/08/2009 - 13:28

Avoca secures timely 36% stake in Dioro

19/08/2009 - 13:28

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Gold producer, Avoca Resources may have secured a victory in the final hours of its bid for Goldfields miner Dioro Exploration, raising its stake in Dioro to just over 36 per cent after a UK fund manager relinquished its hefty interest in the miner.

Gold producer, Avoca Resources may have secured a victory in the final hours of its bid for Goldfields miner Dioro Exploration, raising its stake in Dioro to just over 36 per cent after a UK fund manager relinquished its hefty interest in the miner.

UK-based Baker Steel Capital Managers acceptance, representing more than 10.4 million Dioro shares, elevates Avoca's position as the dominant shareholder from 23.4 per cent to now holding a 36.46 per cent share.

Timely news for Avoca which, just seven days ago, declared its revised $68 million all-scrip takover bid for Dioro was final and would not be extended past today.

The offer was previously due to close on August 12.

"Avoca will not be further extending its offer period nor increasing its offer price," Avoca said in a statement last week.

Interestingly, late last month Dioro advised its shareholders to take no action in relation to Avoca's better offer of one of Avoca share for every 2.3 Dioro shares held - despite recommending the previous bid - in light of a rival offer by gold miner Ramelius Resources.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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