Dioro Exploration has agreed to accept the latest takeover offer from Avoca Resources, the company announced yesterday in a statement to the Australian Securities Exchange.
The latest offer was for one Avoca share for every 2.3 Dioro shares held, which values Dioro at 74.6 cents per share, or around $68.3 million.
The Dioro board unanimously recommended its shareholders accept Avoca’s offer after discussions with rival bidder Northgate Minerals broke down on Tuesday.
Avoca managing director Rohan Williams told journalists during a teleconference yesterday that the deal is the best possible outcome, and places the company in a position to increase gold output to its end target of 500,000 ounces per annum.
“This deal is a win-win for shareholders of both companies,” he said.
Avoca’s chairman Robert Reynolds agrees the deal will work in the favour of both parties.
“The offer will allow Dioro shareholders to retain an interest in Dioro’s Frog’s Leg gold mine, while becoming a shareholder of a mid-tier Australian gold producer of scale and with significant growth potential,” he said.