Avoca Resources Limited (ASX:AVO)

Description

    • Emerging gold producer. Key asset is the Higginsville gold project in Western Australia
    • Higginsville has a resource base of over 1m oz with strong exploration potential
    • Production at Higginsville is expected to begin in mid-2007 (annual rate of
      160,000oz to 190,000oz with LOM cash costs of US$285/oz)
    • Avoca also holds interests in a number of attractive exploration projects in Australia

Transaction Overview

    • Pala Investments Holdings Limited acquired a 13.3% equity interest in Avoca from Goldfields,
       at a total value of A$26m, announced 22 January 2007
    • Pala became the largest shareholder of Avoca and was invited to join the board
    • Pala was later the cornerstone investor in a A$110m Avoca financing, taking 27.3% of the financing
    • Pala is providing strategic advice for the development of Higginsville and other exploration projects
    • Pala currently holds more than 19.0% of Avoca’s shares

http://www.avocaresources.com.au