Dioro offer now open

Kalgoorlie gold company Avoca Resources has opened its offer to acquire all of the shares in Dioro Exploration.

Kalgoorlie gold company Avoca Resources has opened its offer to acquire all of the shares in Dioro Exploration and is in the process of dispatching its Bidder’s Statement to Dioro shareholders outlining the logic of its offer.

According to Avoca, the offer is on the basis of one Avoca Share for every 2.82 Dioro Shares.

The offer is subject to conditions, which are set out in the company’s Bidder’s Statement, and will close at 5:00pm (Perth time) on 14 July 2009, unless extended.

Avoca recently received foreign investment approval to acquire 100% of the issued capital of Dioro.

Avoca Chairman Robert Reynolds said that all Dioro shareholders will now be able to accept Avoca’s compelling offer to acquire their shares in Dioro.

“Early support for Avoca has already been demonstrated by our purchase of the 14.95% interest from Dioro’s major shareholders, who have already recognised the benefits of accepting Avoca shares,” Reynolds said.

“Combining the two southern Kalgoorlie gold companies is a logical step forward and the Avoca Board is confident that it will provide a dramatic value driver for the shareholders of both companies.

Avoca is confident it will produce 180,000 ounces in FY2009 / 2010, at cash costs of approximately $450/oz (net of royalties), and recently delivered a new weekly gold production record of 4,280 ounces from Trident.

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