One of the largest mining companies in Australia has announced that it has extended its off-market takeover for an emerging australian copper company.
Oz Minerals has announced this week that it will be extending the offer period for its recommended off-market takeover offer for all the ordinary shares of Avanco Resources Limited.
The extension will now see Avanco have until 1 June 2018 to accept Oz Minerals’ investment offer.
Through the offer, OZ values Avanco at $0.17 per Avanco share, which is at a level higher than the Avanco share price at any time in the last five years, and which represents a significant 121% premium to Avanco’s share price of $0.077 per share before the Offer was announced.
The company had announced its intention to takeover Avanco Resources in March 2018, which was valued at A$418 million.
In the acquisition of Avanco, it would immediately add to OZ Minerals' copper production profile, providing expansion options in the highly prospective Carajás copper province and Gurupi gold belt in Brazil.
Speaking at the time, Oz Minerals Chairman, Rebecca McGrath said: "Avanco is a good strategic fit for OZ Minerals, diversifying our portfolio and adding to our organic growth pipeline with its development and exploration opportunities in the Carajás province. Brazil is a stable jurisdiction that is supportive of mining with a reliable mining code.”
Avanco currently owns and operates three operations in the Carajás province, the Antas Mine (copper-ergold mine), Pedra Branca (copper) and Centrogold (gold).
The CentroGold Project, as an example, is considered to be one of the largest undeveloped gold projects in Brazil.