Avoca Resources Limited (AVO) was an Australian gold mining company, based in Perth, Western Australia. It merged in with Anatolia Minerals Development Limited in 2011 to form Alacer Gold.
The company currently operates two gold mines, both in Western Australia, the Higginsville and the South Kalgoorlie Gold Mine. It is also part-owner of a third operation, the Frog's Leg Gold Mine, which it owns 49% of.
The latter two mines were acquired through the takeover of Dioro Exploration NL, which raised the company's annual production forecast to 270,000 ounces of gold.Avoca Resources Limited is an ASX200 Australian mid-tier gold mining company Avoca home page, accessed: 1 July 2010 The takeover of Dioro was subject to a takeover war between Avoca and rival Ramelius Resources which lasted for almost one year. Avoca's successful bid made the company the largest gold tenement holder in the area spanning from Kalgoorlie to Kambalda.Ramelius Resources accepts Avoca offer for stake in gold miner Dioro Exploration The Australian, published: 12 February 2010, accessed: 1 July 2010
Company history
Avoca was listed on the Australian Securities Exchange, the ASX, in April 2002.About Avoca Avoca home page, accessed: 1 July 2010
Avoca paid A$6.25 million to Gold Fields for its Higginsville exploration project in June 2004. After discovering the Trident deposit in late 2004, Avoca raised $125 million in April 2007 to build a new mine at Higginsville.Avoca seeks $125m for Higginsville mine The Sydney Morning Herald, published: 3 April 2007, accessed: 11 September 2009 Also in 2007, Avoca purchased the neighbouring Chalice deposit from Chalice Gold Mines Limited. Gold production at the mine begun in 2008 from underground operations,About Avoca Avoca website, accessed: 11 September 2009 with a first gold pour on 1 July 2008.Higginsville Avoca website, accessed: 11 September 2009
In its first year of production, the financial year 2008-09, Avoca produced 131,227 ounces of gold from its Higginsville operation.Quarterly Activities Report June 2009 Avoca ASX announcement, published: 31 July 2009, accessed: 1 July 2010
Dioro takeover On 14 April 2009, Avoca announced a takeover offer for Dioro Exploration NL, worth A$49 million.Avoca Announces $49M Scrip Takeover Offer for Dioro Avoca ASX announcement, published: 14 April 2009, accessed: 1 July 2010 From mid-2009 onwards, Dioro became the subject of a takeover war between Avoca and Ramelius, with the later also making a bit for Dioro.Response to Dioro’s 8th Supplementary Target’s Statement Avoca Resources announcement, published: 17 August 2009, accessed: 6 September 2009Ramelius shares rise on strong gold results news.com.au, published: 10 August 2009, accessed: 6 September 2009 Ramelius, owner of the Wattle Dam Gold Mine, was, like Avoca, interested in expanding its operations and targeted Dioro for its two operating gold mines, South Kal and Frog's Leg.Avoca Resources to sweep up remaining Dioro Exploration shareholders The Australian, published: 22 February 2010, accessed: 1 July 2010
Avoca eventually had to drop its bid for Dioro,Avoca's bid for Dioro beaten by Ramelius offer business.watoday.com.au, published: 30 July 2009, accessed: 6 September 2009 having reached a 44.85% interest in Dioro at the close of the offer on 20 August, short of the 50% needed.Avoca reaches 44.85% at close of Offer for Dioro Avoca Resources announcement, published: 17 August 2009, accessed: 6 September 2009 Ramelius's unsuccessful offer for the company closed on 8 February 2010, while Avoca made a renewed takeover offer for the company in late December 2009,NOTICE OF INTENTION TO MAKE A NEW TAKEOVER OFFER FROM AVOCA AND UPDATE ON RAMELIUS’S AMENDED OFFER Dioro ASX announcement, published: 4 January 2010, accessed: 6 January 2010 despite having earlier declared that its August bid was final.Avoca increase bid for Dioro Exploration ninemsn.com.au, published: 29 December 2009, accessed: 6 January 2010
Avoca reached a relevant interest of 94.65% in Dioro on 3 March 2010 and commenced compulsory acquisition of the company.Commencement of Compulsory Acquisition of Dioro Avoca ASX announcement, published: 3 March 2010, accessed: 1 July 2010 The company completed the compulsory acquisition by mid-April and Dioro was subsequently delisted from the Australian and the Toronto stock exchanges.Completion of Dioro Compulsory Acquisition Avoca ASX announcement, published: 15 April 2010, accessed: 1 July 2010
The final cost of the acquisition of Dioro for Avoca amounted to A$126 million. A subsequent attempt to purchase the remaining 51% of the Frog's Leg mine was however rejected by the owner, La Mancha Resources.Avoca Resources' Frog leg bid rejected The Australian, published: 16 March 2010, accessed: 1 July 2010
Gold production Gold production of the company: Year Production Grade Cost per ounce 2008-09 . 131,227 ounces 3.8 g/t 2009-10
References
External links Official website Avoca Resources (AVO) at the Australian Securities Exchange