new substantial shareholder, page-13

This is taken from Pala investments website in its dealing with Avoca Resources, reading through this, I am guessing Pala will try to become a cornerstone investor with BLY and help them secure their future financing or maybe even try to take it over.


Avoca Resources Limited (ASX:AVO)

Description

• Emerging gold producer. Key asset is the Higginsville gold project in Western Australia
• Higginsville has a resource base of over 1m oz with strong exploration potential
• Production at Higginsville is expected to begin in mid-2007 (annual rate of
160,000oz to 190,000oz with LOM cash costs of US$285/oz)
• Avoca also holds interests in a number of attractive exploration projects in Australia

Transaction Overview

• Pala Investments Holdings Limited acquired a 13.3% equity interest in Avoca from Goldfields,
at a total value of A$26m, announced 22 January 2007
• Pala became the largest shareholder of Avoca and was invited to join the board
• Pala was later the cornerstone investor in a A$110m Avoca financing, taking 27.3% of the financing
• Pala is providing strategic advice for the development of Higginsville and other exploration projects
• Pala currently holds more than 19.0% of Avoca’s shares