The directors of Australian gold miner Dioro Exploration have recommended that shareholders accept Avoca’s improved takeover offer in the absence of a superior offer.
The announcement comes after Dioro terminated discussions with gold and copper producer Northgate Minerals.
Dioro’s directors have announced that they unanimously intend to accept the offer of 1 Avoca share for every 2.3 Dioro shares, up from the previous bid of 1 share for every 2.4 Dioro shares.
The offer values each Dioro Share at 74.6 cents a share, representing a premium of about 89% on the closing price of Dioro Shares on 9 April.
The offer also allows Dioro shareholders to retain an interest in Dioro’s 49% owned Frog’s leg gold mine in Western Australia.
Avoca said Dioro shareholders would be issued Avoca shares within ten business days from the date of formal acceptance of the offer.
Avoca’s initial offer comprised one share for every 2.82 Dioro shares and was made in April 2009.