By Ross Louthean, Mineweb.com
Avoca Resources (ASX: AVO) which mines gold in the Higginsville region said it would now offer A65 cents cash and 0.325 Avoca shares for every Dioro Exploration (ASX & TSX: DIO) share.
This, Avoca said, would value each Dioro share at $A1.25 which is an 8.2% premium to the $A1.155 value implied by rival Ramelius Resources' offer on the date it was announced, and a 7.2% premium to the $A1.165 value implied by the Ramelius offer on December 24.
Avoca already has a 44.85% relevant interest in Dioro as well as holding options representing a further 3.2% of Dioro's issued shares on a diluted basis. Dioro mines gold on licences between Coolgardie and Kalgoorlie.
Ramelius Resources (ASX: RMS) mines gold at Wattle Dam near Kambalda.
Avoca said today that Ramelius's offer for Dioro was already final.
Avoca said a combination of Avoca and Dioro would create a leading ASX 200 Western Australian-focused gold producer that could produce about 270,000 ounces in 2010 and would have a resource base in excess of 4 million oz.
Avoca was confident its Trident operations at Higginsville would produce more than 190,000 oz of gold in the coming year at an operating cash cost, plus royalties, of $A452/oz ($US402/oz).