Anatolia Minerals Development Ltd., which is developing a gold mine in Turkey, agreed to buy Avoca Resources Ltd. for more than $974 million to add production in Australia.
Anatolia will pay 0.4453 of a share for each Avoca share, the companies said in a joint statement Wednesday. That values each Avoca share at $3.36, based on Arapahoe County- based Anatolia’s closing price Tuesday on the Toronto Stock Exchange. The bid is about 9.4 percent more than Avoca’s closing price in Sydney on Wednesday, according to Bloom berg calculations. The enlarged company will be renamed Alacer Gold.
The companies said combined gold production will be 600,000 ounces in 2013 and 800,000 ounces in 2015. Total gold reserves will be 3.5 million ounces, and gold resources will be almost 15 million ounces.
Ed Dowling, Anatolia’s chief executive, will helm the new company. West Perth-based Avoca’s chairman, Rob Reynolds, will be chairman.
The board of Alacer will have four members from each of the two companies’ current boards and one person from Pala Investments Holdings Ltd., the biggest shareholder in both Avoca and Anatolia.
BMO Capital Markets is advising Anatolia, and Goldman Sachs & Partners Australia is advising Avoca. Bloomberg News
