Avoca Resources Ltd
(ASX:AVO) and Canadian company Anatolia Minerals Development have agreed to merge.
Under the deal Avoca shareholders will receive 0.4453 common shares of Anatolia for each Avoca share they hold.
The merged entity will be called Alacer Gold Corp and trade on both the Australian and Toronto stock exchanges.
Based on the latest closing prices of Anatolia and Avoca, Alacer Gold will have a combined market cap of US$2 billion.
Directors of both companies have recommended the merger to shareholders, with Avoca’s largest shareholder, Pala Investments, saying it intends to support the deal.
Anatolia is currently developing three projects in Turkey and Avoca has a portfolio of mines in Australia.
Avoca Resources reported earnings of $57.78 million for the 12 months to June 30, 2010.
