pala converts a$14.8m of convertible bonds

PALA CONVERTS A$14.8M OF CONVERTIBLE BONDS

Fantastic support from major investor. Shows they know AVO's true value. However, could this affect the DIO offer?

Angers


ASX 200 mid-tier gold producer, Avoca Resources Ltd (ASX:AVO), is pleased to announce that its major shareholder, Pala Investments AG (Pala) has elected to convert its A$14.8 million holding of Avoca’s convertible bonds (issued on 14 May 2007) at a conversion price of $1.741 per share. The convertible bonds carry a 6% coupon and are redeemable on or before 14 May 2012. Following Pala’s conversion, there is A$23.2 million of convertible bonds outstanding.

The conversion of Pala’s holding results in the issue to Pala of 8,500,862 shares (Appendix 3B attached) and an expanded issued capital for Avoca of 257,403,828 shares. Pala’s holding in Avoca increases from 19.88% to 22.51%.

Avoca’s Managing Director Rohan Williams said “we are pleased that Pala has elected to convert its convertible bonds early and continues to support Avoca in its ambition to become Australia’s premier mid-tier gold producer.”