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THE SMART NEWS SOURCE | Feb 11 2012 02:40 | LAST UPDATED Feb 11 2012 02:40 |
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Harmony Gold Mining, South Africa's third-largest gold producer, has agreed to sell its entire 12,48% interest in Australian gold company Dioro Exploration, buyer Avoca Resources said on Tuesday. The sale of Harmony's stake, which is held through its subsidiaries New Hampton Goldfields and South Kal Mines, was announced as part of the Australian group Avoca's announcement of an Aus$49-million all-share takeover offer for Dioro. Avoca said in a statement that it had received acceptances from Dioro stakeholders Harmony Gold and Baker Steel Capital Managers for 14,95% of shares. Baker Steel Capital Managers has a 10,47% stake in Dioro but has agreed to sell only 2,47%. Under the terms of the offer, Avoca will give one of its shares for every 2,82 Dioro shares, valuing Dioro at 53 cents a share. Avoca said the combined entity would produce around 250 000 ounces per annum in fiscal 2010 and hold assets that are likely to propel the production target to 500 000 ounces per annum. Should the merger go ahead, Avoca shareholders would hold 88,3% while Dioro investors will hold 11,7%. But with an effective 14,95% stake in hand, Avoca is unable to acquire more shares until it receives Foreign Investment Review Board approval. Avoca said it planned to apply on Tuesday for Foreign Investment Review Board approval to acquire 100% of Dioro.  CONTINUES BELOW Dioro has in the meantime advised its shareholders to take no action in relation to the unsolicited offer from Avoca until they receive the Dioro directors' formal recommendation. -- I-Net Bridge TOPICS IN THIS ARTICLE
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