Dioro board asks shareholders to take no action of Avoca offer

Shareholders of integrated gpld producer, Dioro Exploration NL, Australia, have been advised by analysts to hold off until the last minute from accepting an improved takeover over offer from rival gold miner Avoca Resources Ltd in case of a rival bid.

The Dioro board has not yet issued a formal endorsement of the offer, due to close on 21 July.

Dioro's operations include open pit mining, underground mining, mine development, resource development and exploration. The company aims to emerge as a mid-tier gold producer through exploration and M&A. Its South Kalgoorlie operations of which it took operational control in December 2007 are located near Kalgoorlie in Western Australia. Its Frog's Leg project is located 25 km west of Kalgoorlie. Gold production at the Frog's Leg project commenced on 13 May 2008 with the first gold poured at the its fully owned Jubilee Mill.

Perth-based mng and exploration company Avoca  acquired Gold Fields Ltd for the Higginsville exploration project located 120 km south of Kalgoorlie. In April 2003 the company discovered the high-grade Trident ore body, which is considered the best gold discoveries in the region over the last two decades.

According to market sources Dioro shareholders would do well to wait and watch for the time being as a third party may emerge, though the possibility is getting more remote by the day.

Meanwhile Dioro yesterday stuck to its advice given earlier that called upon shareholders to ignore Avoca's improved offer of one of its shares for every 2.8 Dioro shares held. The revised offer is up from 1 Avoca share for 2.4 Dioro shares held.