ASX200 gold producer, Avoca Resources Limited (“Avoca” ASX:AVO) has today:
· increased its Offer consideration under its takeover Offer for all of the shares in Dioro Exploration NL (“Dioro”) to 1 Avoca Share for every 2.4 Dioro Shares, valuing each Dioro Share at 74.8 cents per share[1];
· extended the Offer period by one week, so that it is now scheduled to close at 5.00 pm (Perth time) on Tuesday 21 July 2009 (unless further extended or withdrawn); and
· released its First Supplementary Bidder’s Statement relating to the above changes in Avoca’s Offer, which also includes information on Avoca’s recent strong performance and its upgraded FY2010 forecast production.
Avoca’s increased Offer represents a premium of over 89% to the 39.5 cent closing price of Dioro Shares on 9 April 2009 (the trading day prior to the announcement of the Offer)1 and a premium of 19% to the 63 cent closing price of Dioro shares on 3 July 2009, the last trading day prior to announcement of the increase1.
Avoca Chairman Robert Reynolds said: “As Dioro's largest shareholder with a 14.95% shareholding, Avoca is in a unique position to achieve a positive outcome for both Dioro and Avoca shareholders upon successful completion of our Offer. Both sets of shareholders will then participate in a mid-tier Australian gold producer of scale and with significant growth potential.”
Avoca encourages Dioro shareholders to consider all information that has been sent to them (including that set out in the attached First Supplementary Bidder’s Statement) and to ACCEPT Avoca’s Offer. Avoca also reminds Dioro shareholders that:
• Avoca’s management has continued to drive value for Avoca shareholders through strong performance, as demonstrated by the record June 2009 quarter gold production result of 52,118 ounces and an increased FY2010 production forecast of 190,000+ ounces of gold, which is referred to in the First Supplementary Bidder’s Statement;
• if Dioro shareholders accept Avoca’s Offer they will not only retain their exposure to Dioro’s assets, but importantly, they will also gain exposure to Avoca’s first-class assets and management team; and
• if Avoca’s Offer is not successful and the Offer lapses or is withdrawn, the Dioro share price may fall substantially in the absence of another bidder making an alternative offer (the prospects of which are likely to be lower given Avoca’s existing 14.95% shareholding in Dioro and the fact that no alternate bidder has emerged despite Dioro’s “ongoing discussions” over a lengthy period).
· released its First Supplementary Bidder’s Statement relating to the above changes in Avoca’s Offer, which also includes information on Avoca’s recent strong performance and its upgraded FY2010 forecast production.
Avoca’s increased Offer represents a premium of over 89% to the 39.5 cent closing price of Dioro Shares on 9 April 2009 (the trading day prior to the announcement of the Offer)1 and a premium of 19% to the 63 cent closing price of Dioro shares on 3 July 2009, the last trading day prior to announcement of the increase1.
Avoca Chairman Robert Reynolds said: “As Dioro's largest shareholder with a 14.95% shareholding, Avoca is in a unique position to achieve a positive outcome for both Dioro and Avoca shareholders upon successful completion of our Offer. Both sets of shareholders will then participate in a mid-tier Australian gold producer of scale and with significant growth potential.”
Avoca encourages Dioro shareholders to consider all information that has been sent to them (including that set out in the attached First Supplementary Bidder’s Statement) and to ACCEPT Avoca’s Offer. Avoca also reminds Dioro shareholders that:
• Avoca’s management has continued to drive value for Avoca shareholders through strong performance, as demonstrated by the record June 2009 quarter gold production result of 52,118 ounces and an increased FY2010 production forecast of 190,000+ ounces of gold, which is referred to in the First Supplementary Bidder’s Statement;
• if Dioro shareholders accept Avoca’s Offer they will not only retain their exposure to Dioro’s assets, but importantly, they will also gain exposure to Avoca’s first-class assets and management team; and
• if Avoca’s Offer is not successful and the Offer lapses or is withdrawn, the Dioro share price may fall substantially in the absence of another bidder making an alternative offer (the prospects of which are likely to be lower given Avoca’s existing 14.95% shareholding in Dioro and the fact that no alternate bidder has emerged despite Dioro’s “ongoing discussions” over a lengthy period).
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