Avoca Resources Ltd
(ASX:AVO) may have some stiff competition in its bid for Dioro Exploration NL
(ASX:DIO) after Ramelius Resources Ltd
(ASX:RMS) made a last minute bid for the gold producer late yesterday.
Ramelius’ 2 for 1 scrip offer values Dioro at $1 a share or a total $92 million.
This compares to Avoca’s revised offer of one of its shares for every 2.3 Dioro shares, valuing Dioro at 71 cents a share.
Dioro had recommended Avoca’s revised offer in the absence of a superior one, however the company now says the Ramelius offer may be superior to Avoca’s amended offer.
Ramelius owns the Wattle Dam goldmine and the Burbanks treatment plant, close to Dioro’s open cut operations and Jubilee treatment plant.
Dioro has advised shareholders take no action in relation to the Avoca amended offer until the company has assessed the Ramelius offer compared to the Avoca amended offer.
Dioro Exploration has posted net losses in the last three years, and looking back over the past five years Avoca Resources has recorded net losses.
