Avoca Resources Limited

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Avoca Resources Limited
Public, ASX: AVO
Industry Resources
Fate Merged with Anatolia Minerals Development Limited to form Alacer Gold Corp.
Defunct February 2011 (2011-02)
Headquarters Perth, Australia
Key people
Robert Reynolds - Chairman
Rohan Williams - CEO
Products Gold
Website http://www.avocaresources.com.au/

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.[1] 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.[2]

Company history[edit]

Gold mines in the Kalgoorlie region

Avoca was listed on the Australian Securities Exchange, the ASX, in April 2002.[3]

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.[4] 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,[5] with a first gold pour on 1 July 2008.[6]

In its first year of production, the financial year 2008-09, Avoca produced 131,227 ounces of gold from its Higginsville operation.[7]

Dioro takeover[edit]

On 14 April 2009, Avoca announced a takeover offer for Dioro Exploration NL, worth A$49 million.[8] 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.[9][10] 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.[11]

Avoca eventually had to drop its bid for Dioro,[12] having reached a 44.85% interest in Dioro at the close of the offer on 20 August, short of the 50% needed.[13] 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,[14] despite having earlier declared that its August bit was final.[15]

Avoca reached a relevant interest of 94.65% in Dioro on 3 March 2010 and commenced compulsory acquisition of the company.[16] The company completed the compulsory acquisition by mid-April and Dioro was subsequently delisted from the Australian and the Toronto stock exchanges.[17]

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.[18]

Gold production[edit]

Gold production of the company:

Year Production Grade Cost per ounce
2008-09 .[7] 131,227 ounces 3.8 g/t
2009-10

References[edit]

  1. ^ Avoca Resources Limited is an ASX200 Australian mid-tier gold mining company Avoca home page, accessed: 1 July 2010
  2. ^ Ramelius Resources accepts Avoca offer for stake in gold miner Dioro Exploration The Australian, published: 12 February 2010, accessed: 1 July 2010
  3. ^ About Avoca Archived 2008-07-18 at the Wayback Machine. Avoca home page, accessed: 1 July 2010
  4. ^ Avoca seeks $125m for Higginsville mine The Sydney Morning Herald, published: 3 April 2007, accessed: 11 September 2009
  5. ^ About Avoca Archived 2008-07-18 at the Wayback Machine. Avoca website, accessed: 11 September 2009
  6. ^ Higginsville Archived 2009-05-28 at the Wayback Machine. Avoca website, accessed: 11 September 2009
  7. ^ a b Quarterly Activities Report June 2009 Avoca ASX announcement, published: 31 July 2009, accessed: 1 July 2010
  8. ^ Avoca Announces $49M Scrip Takeover Offer for Dioro Avoca ASX announcement, published: 14 April 2009, accessed: 1 July 2010
  9. ^ Response to Dioro’s 8th Supplementary Target’s Statement Archived 2011-02-18 at the Wayback Machine. Avoca Resources announcement, published: 17 August 2009, accessed: 6 September 2009
  10. ^ Ramelius shares rise on strong gold results news.com.au, published: 10 August 2009, accessed: 6 September 2009
  11. ^ Avoca Resources to sweep up remaining Dioro Exploration shareholders The Australian, published: 22 February 2010, accessed: 1 July 2010
  12. ^ Avoca's bid for Dioro beaten by Ramelius offer business.watoday.com.au, published: 30 July 2009, accessed: 6 September 2009
  13. ^ Avoca reaches 44.85% at close of Offer for Dioro Archived 2011-02-18 at the Wayback Machine. Avoca Resources announcement, published: 17 August 2009, accessed: 6 September 2009
  14. ^ 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
  15. ^ Avoca increase bid for Dioro Exploration ninemsn.com.au, published: 29 December 2009, accessed: 6 January 2010
  16. ^ Commencement of Compulsory Acquisition of Dioro Avoca ASX announcement, published: 3 March 2010, accessed: 1 July 2010
  17. ^ Completion of Dioro Compulsory Acquisition Avoca ASX announcement, published: 15 April 2010, accessed: 1 July 2010
  18. ^ Avoca Resources' Frog leg bid rejected The Australian, published: 16 March 2010, accessed: 1 July 2010

External links[edit]