Avoca Resources is set to become a leading WA gold producer after the Foreign Investment Review Board (FIRB) approved its acquisition of Dioro Exploration.
The FIRB approval allows Avoca to increase its interest from 15% to 100% and work towards becoming a significant WA-focused gold producer.
Avoca Chairman Robert Reynolds said the bid is a “milestone” that will allow the company to become a leading Australia’s “pre-eminent mid-tier gold producer”.
“It provides shareholders of both companies with an opportunity to participate in a combined company with a significant portfolio of quality assets,” he said.
The deal will combine resources of approximately four million ounces and allow Avoca to produce 250,000oz of gold per annum.
“It is also expected to deliver future growth and position the company towards its long term goal of producing 500,000 oz of gold per annum,” Avoca managing director Rohan Williams said.
Following a successful transaction, Avoca will be the largest tenement holder in the Kalgoorlie to Norseman gold belt.