OZ Minerals closes $323.2m Avanco Resources takeover

9 August 2018 (Last Updated June 3rd, 2020 11:33)

Australia- based mining company OZ Minerals, through its Brazilian subsidiary, has closed the compulsory acquisition of all the outstanding shares in Avanco Resources, in a deal valued at A$418m ($323.2m).

OZ Minerals closes $323.2m Avanco Resources takeover
Underground at Prominent Hill. Credit: OZ Minerals.

Australia- based mining company OZ Minerals, through its Brazilian subsidiary, has closed the compulsory acquisition of all the outstanding shares in Avanco Resources, in a deal valued at A$418m ($323.2m).

The compulsory acquisition comes after acceptances for OZ Minerals’ offer for Avanco exceeded 90% in June this year.

“We are excited about acquiring Avanco as it is aligned to our multi-asset, province-focused growth strategy.”

The company originally made the takeover bid in March this year, offering A$0.085 in cash and 0.009 shares to Avanco shareholders for each share held by them in Avanco.

Following the completion of the transaction, OZ Minerals now owns 100% of the shares in Avanco.

When the acceptances for the offer reached 90.46%, the company began the compulsory acquisition process for the remaining 9.54% of shares from shareholders who did not accept the bid.

The transaction will allow OZ Minerals access to seven mines in the next six years, including Prominent Hill, Carrapateena, West Musgrave, Antas, CentroGold, Pedra Branca and Pantera.

Besides, the company will have strategic presence in the Carajás copper province and Gurupi gold belt in Brazil.

At the time of making the offer in March, OZ Minerals chief executive Andrew Cole said: “We are excited about acquiring Avanco as it is aligned to our multi-asset, province-focused growth strategy.

“Not only does it immediately contribute copper tonnes to our production profile, it offers significant additional new growth options and a meaningful footprint in the highly prospective Carajás province as well as the Gurupi greenstone gold belt in Brazil.”

The Carajás province has a large concentration of high tonnage iron oxide copper gold (IOCG) deposits.

Avanco has a land holding of around 1,800km², which represents the second largest holding in the region, and a mineral resource base of more than 1Mt contained copper.

OZ Minerals operates in Australia and abroad, with some of the projects including the Prominent Hill and Carrapateena copper-gold mining operations in South Australia and the West Musgrave undeveloped copper nickel deposit.