Dioro says Canadian deal offers better value than Avoca bid
20 Jul 2009
Dioro Exploration NL says it is in talks with a Canadian copper and gold mining firm that has put in a superior offer than Aovca Resources Ltd's hostile takeover bid.
Avoca has made a $68.5 million, all-scrip offer for Diora which is expected to announce the details of a proposed transaction with Northgate Minerals Corporation, listed on the Toronto Stock Exchange.
Dioro said that on the basis of its discussion with Northgate, the board of Dioro viewed the proposed transaction with the Canadian firm more favourably as it would provide superior value than the Avoca offer. It added that the details of the proposed transaction would be announced within one week.
Earlier on Monday Avoca said it would extend its offer for Dioro for a week until 28 July and asked Dioro to provide a comprehensive report on the status of its third party talks.
Dioro said in May, when Avoca's original offer was opened, that it had been in talks with both international and Australian parties for the previous 12 months about selling some or all of its assets and that the talks were ongoing.
Meanwhile Dioro has rejected Avoca's improved, unconditional offer of one Avoca share for every 2.4 Dioro shares saying the proposal fell short of the true worth of its assets.
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