PERTH (miningweekly.com) – Copper miner Oz Minerals has extended its takeover period for fellow-listed Avanco Resources to July 6, after gaining a 73.9% foothold in the takeover target.
Oz Minerals said on Wednesday that acceptances and acceptance instructions have been received from all of Avanco’s major shareholders, after the offer was declared unconditional on June 7.
Oz Minerals is offering Avanco shareholders 8.5c in cash and 0.009 of its own shares for every Avanco share held, valuing the company at A$418-million.
Oz Minerals intended to develop Avanco’s assets following the takeover offer, but noted that it would likely require significant levels of funding. The company has said that while it would investigate all funding models, the most likely method of raising the required funding would be through the issue of new Avanco shares.
Avanco owns the producing Antas copper mine, in Brazil, and holds a number of exploration assets, as well as the near-term Centro gold project, where a scoping study has been completed. The company in January also acquired the Pantera copper project, which has an inferred resource of 20.8-million tonnes, at 1.7% copper and 0.2% gold for 350 000 t of copper and 140 000 oz of gold.