Avanco Resources Announces Extension of Offer by OZ Minerals

OZ Minerals Limited announced that it has extended the offer period for its recommended off-market takeover offer (through its wholly owned subsidiary OZ Minerals Brazil (Holdings) Pty Ltd) for all the ordinary shares in Avanco Resources Limited.

The Offer is now scheduled to close at 7.00pm (Sydney time) on 1 June 2018

In relation to this extension, a formal notice of variation has been lodged with ASIC and served on Avanco, and has also been sent to Avanco shareholders. A copy of the notice, along with a copy of a letter sent to shareholders accompanying the notice, is attached to this announcement.

The Offer values Avanco at $0.17 per Avanco share, which is at a level higher than the Avanco share price at any time in the last five years, and which represents a significant 121% premium to Avanco’s share price of $0.077 per share before the Offer was announced1 . It also allows Avanco shareholders to hold shares in a financially stronger company with a diversified asset portfolio and a history of paying dividends.

OZ Minerals notes that the offer price is final, in the absence of a competing proposal. This means that OZ Minerals cannot, by law, increase its offer price unless Avanco receives a competing proposal. Furthermore as at the date of this announcement, the OZ Minerals Offer is the only offer available for all your Avanco shares.

The directors of Avanco unanimously recommend that Avanco shareholders accept the Offer in the absence of a superior proposal. Importantly, and as announced by Avanco on 2 May 2018, Avanco’s directors and certain members of Avanco management have already accepted the Offer for their collective holdings, representing 0.57% of all Avanco shares2 . Avanco also confirmed that it has not received any competing proposal.

As at the date of this announcement, OZ Minerals has a relevant interest of 22.31%2 in Avanco.


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