Avoca Resources Limited
Encyclopedia
Avoca Resources Limited was an Australian
gold mining company, based in Perth
, Western Australia
. It merged in with Anatolia Minerals Development Limited in 2011 to form Alacer Gold.
The company currently operates two gold mines, both in Western Australia, the Higginsville
and the South Kalgoorlie Gold Mine
. It is also part-owner of a third operation, the Frog's Leg Gold Mine
, which it owns 49% of.
The latter two mines were acquired through the takeover
of Dioro Exploration NL, which raised the company's annual production forecast to 270,000 ounces of gold. The takeover of Dioro was subject to a takeover war between Avoca and rival Ramelius Resources which lasted for almost one year. Avoca's successful bid made the company the largest gold tenement holder in the area spanning from Kalgoorlie
to Kambalda
.
, the ASX, in April 2002.
Avoca paid A$
6.25 million to Gold Fields
for its Higginsville exploration project in June 2004. After discovering the Trident deposit in late 2004, Avoca raised $125 million in April 2007 to build a new mine at Higginsville. Also in 2007, Avoca purchased the neighbouring Chalice deposit from Chalice Gold Mines Limited. Gold production at the mine begun in 2008 from underground operations, with a first gold pour on 1 July 2008.
In its first year of production, the financial year 2008-09, Avoca produced 131,227 ounces of gold from its Higginsville operation.
, was, like Avoca, interested in expanding its operations and targeted Dioro for its two operating gold mines, South Kal and Frog's Leg.
Avoca eventually had to drop its bid for Dioro, having reached a 44.85% interest in Dioro at the close of the offer on 20 August, short of the 50% needed. Ramelius's unsuccessful offer for the company closed on 8 February 2010, while Avoca made a renewed takeover offer for the company in late December 2009, despite having earlier declared that its August bit was final.
Avoca reached a relevant interest of 94.65% in Dioro on 3 March 2010 and commenced compulsory acquisition of the company. The company completed the compulsory acquisition by mid-April and Dioro was subsequently delisted from the Australian and the Toronto stock exchanges.
The final cost of the acquisition of Dioro for Avoca amounted to A$126 million. A subsequent attempt to purchase the remaining 51% of the Frog's Leg mine was however rejected by the owner, La Mancha Resources.
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
gold mining company, based in Perth
Perth, Western Australia
Perth is the capital and largest city of the Australian state of Western Australia and the fourth most populous city in Australia. The Perth metropolitan area has an estimated population of almost 1,700,000....
, Western Australia
Western Australia
Western Australia is a state of Australia, occupying the entire western third of the Australian continent. It is bounded by the Indian Ocean to the north and west, the Great Australian Bight and Indian Ocean to the south, the Northern Territory to the north-east and South Australia to the south-east...
. It merged in with Anatolia Minerals Development Limited in 2011 to form Alacer Gold.
The company currently operates two gold mines, both in Western Australia, the Higginsville
Higginsville Gold Mine
The Higginsville Gold Mine is a gold mine located near Higginsville, 45 km north of Norseman, Western Australia.It is currently owned by Avoca Resources Limited. Avoca has made headlines in 2009 when it became engaged in a bitter dispute with Ramelius Resources over conflicting takeover bids...
and the South Kalgoorlie Gold Mine
South Kalgoorlie Gold Mine
The South Kalgoorlie Gold Mine is a gold mine located south-west of Kalgoorlie, Western Australia. The mine is sometimes also referred to as South Kal Mines - New Celebration, being a merger of the former New Celebration Gold Mine and the Jubilee Gold Mine, which were combined in 2002.It was...
. It is also part-owner of a third operation, the Frog's Leg Gold Mine
Frog's Leg Gold Mine
The Frog's Leg Gold Mine is a gold mine located 19 km west of Kalgoorlie, Western Australia.It is jointly owned by La Mancha Resources and Avoca Resources Limited .-History:...
, which it owns 49% of.
The latter two mines were acquired through the takeover
Takeover
In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.- Friendly takeovers :Before a bidder makes an offer for another...
of Dioro Exploration NL, which raised the company's annual production forecast to 270,000 ounces of gold. The takeover of Dioro was subject to a takeover war between Avoca and rival Ramelius Resources which lasted for almost one year. Avoca's successful bid made the company the largest gold tenement holder in the area spanning from Kalgoorlie
Kalgoorlie, Western Australia
Kalgoorlie, known as Kalgoorlie-Boulder, is a town in the Goldfields-Esperance region of Western Australia, and is located east-northeast of state capital Perth at the end of the Great Eastern Highway...
to Kambalda
Kambalda, Western Australia
Kambalda is a small mining town about 60 kilometres from the mining city of Kalgoorlie in Western Australia, within the Goldfields. It is split into two townsites 4 kilometres apart, Kambalda East and Kambalda West; and is located on the western edge of a giant salt lake, Lake Lefroy...
.
Company history
Avoca was listed on the Australian Securities ExchangeAustralian Securities Exchange
The Australian Securities Exchange was created by the merger of the Australian Stock Exchange and the Sydney Futures Exchange in July 2006. It is the primary stock exchange group in Australia....
, the ASX, in April 2002.
Avoca paid A$
Australian dollar
The Australian dollar is the currency of the Commonwealth of Australia, including Christmas Island, Cocos Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu...
6.25 million to Gold Fields
Gold Fields
Gold Fields Limited is a South African gold mining firm, one of the world’s largest, which is listed on both the Johannesburg Stock Exchange and the New York Stock Exchange ....
for its Higginsville exploration project in June 2004. After discovering the Trident deposit in late 2004, Avoca raised $125 million in April 2007 to build a new mine at Higginsville. Also in 2007, Avoca purchased the neighbouring Chalice deposit from Chalice Gold Mines Limited. Gold production at the mine begun in 2008 from underground operations, with a first gold pour on 1 July 2008.
In its first year of production, the financial year 2008-09, Avoca produced 131,227 ounces of gold from its Higginsville operation.
Dioro takeover
On 14 April 2009, Avoca announced a takeover offer for Dioro Exploration NL, worth A$49 million. From mid-2009 onwards, Dioro became the subject of a takeover war between Avoca and Ramelius, with the later also making a bit for Dioro. Ramelius, owner of the Wattle Dam Gold MineWattle Dam Gold Mine
The Wattle Dam Gold Mine is a gold mine located 25 km south west of Kambalda, Western Australia.It is currently owned by Ramelius Resources...
, was, like Avoca, interested in expanding its operations and targeted Dioro for its two operating gold mines, South Kal and Frog's Leg.
Avoca eventually had to drop its bid for Dioro, having reached a 44.85% interest in Dioro at the close of the offer on 20 August, short of the 50% needed. Ramelius's unsuccessful offer for the company closed on 8 February 2010, while Avoca made a renewed takeover offer for the company in late December 2009, despite having earlier declared that its August bit was final.
Avoca reached a relevant interest of 94.65% in Dioro on 3 March 2010 and commenced compulsory acquisition of the company. The company completed the compulsory acquisition by mid-April and Dioro was subsequently delisted from the Australian and the Toronto stock exchanges.
The final cost of the acquisition of Dioro for Avoca amounted to A$126 million. A subsequent attempt to purchase the remaining 51% of the Frog's Leg mine was however rejected by the owner, La Mancha Resources.
Gold production
Gold production of the company:| Year | Production | Grade | Cost per ounce |
| 2008-09 . | 131,227 ounces | 3.8 g/t | |
| 2009-10 |