avoca significant wa gold producer

AVOCA BID FOR DIORO TO CREATE SIGNIFICANT WA GOLD PRODUCER
Highlights:

•Avoca releases Bidder’s Statement for Dioro takeover offer.
•Creation of an ASX 200 WA focused gold producer with estimated production of 250,000 ounces per annum, a strong financial position, increased institutional support, greater liquidity and a demonstrated ability to access capital markets on favourable terms.
•Dioro shareholders will receive a substantial 40.5% share price premium to the closing price of Dioro’s shares on 9th April 2009 – the last trading day prior to the announcement of this takeover and based on Avoca share price at May 1 2009.
•Avoca has already acquired a substantial 14.95% interest in Dioro from its major shareholders. Importantly, these shareholders retain exposure to Avoca’s potential growth by holding Avoca Shares.
•Avoca has a long term goal of becoming an Australian-based 500,000 ounce per annum gold producer.
•Avoca has a highly-experienced management team with a proven ability to rapidly unlock the value in its projects.
•Dioro shareholders will share in Avoca’s first-class gold production assets, retain exposure to the Dioro assets and have, as exploration upside, the largest tenement holding in the rich Kalgoorlie to Norseman gold belt.
•Potential cost savings from operational synergies by combining the Avoca and Dioro assets.

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