Avoca Resources Ltd (ASX:AVO) will merge with the Turkish gold mining company Antolia Minerals Development to create a new gold producer called Alacer Gold Corporation.
The directors of the Perth based company are supportive of the merger of equals which will allow Avoca shareholders to get 0.4453 Anatolia shares for each Avoca share.
The merger will form a company with a combined market capitalization of $US 2.18 billion. After the completion of the merger the shareholders two companies, Anatolia and Avoca will own the new company Alacer Gold in a 50/50 ratio. The new company would be listed both in Toronto and Sydney. Shareholders have been told to expect a production of 600,000 ounces of gold in the year 2013.
The Managing Director of Avoca Resources, Rohan Williams said that the shareholders would benefit from greater access to capital and increased liquidity. He also said that Avoca and Anatolia's asset portfolios are highly complementary and will provide both companies greater optionality to take advantage of the extensive exploration portfolios in both Australia and Turkey.