news just out avoca to merge

news just out avoca to merge they come it tells you one thing a much higher gold price is coming.


Sept 8 (Reuters) - Canadian gold producer Anatolia Minerals Development Ltd (ANO.TO: Quote) agreed to buy Australia's Avoca Resources (AVO.AX: Quote) for C$1.01 billion ($964.7 million) to create an intermediate global gold producer.

The offer represents a premium of about 9 percent to Avoca's Wednesday close of A$3.34 on the Australian Stock Exchange.

Under the deal, each Avoca shareholder will receive 0.4453 common shares of Anatolia for each ordinary share of Avoca held.

The combined company, which will be called Alacer Gold Corp, will have a combined market capitalization of about $2 billion, the companies said. Anatolia and Avoca shareholders will hold about 50 percent each in Alacer Gold.

Each company has agreed to pay a termination fee of A$10 million to the other party.

Perth, Western Australia-based Avoca is a gold mining and exploration company.

Anatolia shares closed at C$7.81 Tuesday on the Toronto Stock Exchange. They have more than doubled in value year to date.

($1=1.047 Canadian Dollar) (Reporting by Bhaswati Mukhopadhyay in Bangalore)


http://af.reuters.com/article/metalsNews/idAFSGE6870GO20100908