Oz Minerals extends A$416 million investment offer for Avanco Resources

By Dale Benton
One of the largest mining companies in Australia has announced that it has extended its off-market takeover for an emerging australian copper company...

One of the largest mining companies in Australia has announced that it has extended its off-market takeover for an emerging australian copper company.

Oz Minerals has announced this week that it will be extending the offer period for its recommended off-market takeover offer for all the ordinary shares of Avanco Resources Limited.

The extension will now see Avanco have until 1 June 2018 to accept Oz Minerals’ investment offer.

Through the offer, OZ values Avanco at $0.17 per Avanco share, which is at a level higher than the Avanco share price at any time in the last five years, and which represents a significant 121% premium to Avanco’s share price of $0.077 per share before the Offer was announced.

The company had announced its intention to takeover Avanco Resources in March 2018, which was valued at A$418 million.
 

Related stories:

Nevsun Resources "rejects" C$1.5 billion investment offer from Lundin Mining

New Century Resources to supply zinc concentrate from Century Mine to Concord Resources

Weir Group to acquire ESCO Corp for $1.2 billion

 

In the acquisition of Avanco, it would immediately add to OZ Minerals' copper production profile, providing expansion options in the highly prospective Carajás copper province and Gurupi gold belt in Brazil.

Speaking at the time, Oz Minerals Chairman, Rebecca McGrath said: "Avanco is a good strategic fit for OZ Minerals, diversifying our portfolio and adding to our organic growth pipeline with its development and exploration opportunities in the Carajás province. Brazil is a stable jurisdiction that is supportive of mining with a reliable mining code.”

Avanco currently owns and operates three operations in the Carajás province, the Antas Mine (copper-ergold mine), Pedra Branca (copper) and Centrogold (gold).

The CentroGold Project, as an example, is considered to be one of the largest undeveloped gold projects in Brazil.

Share

Featured Articles

Startup Arkon Energy pours $28m into Bitcoin mining

Australian-based Arkon Energy has secured $28 million in funding to expand renewable Bitcoin mining efforts

KSA’s SWCC signs agreements for brine mining projects

Projects will extract bromine and other salts and minerals for use across Kingdom’s oil & gas, petrochemical, pharmaceutical and metallurgical industries

Glencore to pay over £275mn over Africa mining oil bribes

Glencore Energy UK has been found guilty of seven corruption offences, and has been ordered to pay over £275mn in fines for bribing officials in Africa

Aya Moroccan subsidiary seals US$100m financing for Zgounder

Supply Chain & Operations

Crypto mining firm Core Scientific may be facing bankruptcy

Digital Mining

Rio Tinto and Wright Prospecting modernise Rhodes Ridge JV

Supply Chain & Operations