Avoca to scrutinise Ramelius’ conditional offer for DioroASX200...

Avoca to scrutinise Ramelius’ conditional offer for Dioro
ASX200 gold producer, Avoca Resources Limited (ASX:AVO) notes that Ramelius Resources Limited (ASX:RMS) announced yesterday an intention to make a conditional offer to acquire shares in Dioro Exploration NL (ASX:DIO).
Avoca and its advisers are analysing the Ramelius announcement - including Ramelius itself, the quality and extent of its asset base and the company management. Avoca will release a more detailed response in due course. In the interim, Avoca notes that:

•Avoca will not accept Ramelius’ proposed offer (if and when made).

•Avoca is Dioro’s largest shareholder with a 22.32% (and growing) holding in Dioro, and intends to take an active interest in the development of Dioro and its assets.

•Avoca’s large shareholding in Dioro will deny the possibility of any capital gains tax rollover relief for any Dioro shareholder who accepts Ramelius’ proposed offer.

•Dioro’s directors have recommended that Dioro shareholders accept Avoca’s unconditional offer in the absence of a superior offer. Avoca is far from convinced that Ramelius’ offer is superior, particularly given Ramelius’ published underground resource for Wattle Dam of 677,000t @ 5.5 g/t gold for 118,000 ounces (ASX announcement 29 January 2009), and its short track record as a small gold producer.

•Ramelius’ proposed offer is highly conditional, including being contingent on it obtaining a relevant interest in at least 50.1% of Dioro’s shares.

•No Dioro shareholder is presently able to accept Ramelius’ offer and any Dioro shareholder who does accept would not have any prospect of receiving payment for a significant period of time, and then only IF Ramelius’ offer conditions are either satisfied or waived.

For further enquiries, please contact:
Avoca Resources: Rohan Williams 08 9226 0625