Compulsory acquisition of Avanco Resources Limited (ASX: AVB) by OZ Minerals

Oz Minerals Limited (ASX: OZL) confirmed that it has a relevant interest in 90.46 per cent of Avanco’s shares. As a result of this, OZ Minerals intends to compulsorily acquire all of the remaining shares and further notices will be dispatched to all shareholders who did not accept the offer at the date of dispatch. For OZ Minerals, this acquisition of Avanco is a significant milestone which it has achieved. This combination of OZ Minerals and Avanco will provide an operating asset in Antas and it will add to its organic growth pipeline with its development and exploration opportunities in the Carajás and Gurupi provinces in Brazil.

Moreover, Oz’s integration team and other key personnel are now in Brazil and are working with the Avanco team to optimise the assets and unlock the potential of the impressive project pipeline. Shareholders of Avanco who did not accept the offer may still do so up until the scheduled offer closing time of 7.00pm (Sydney time) on 6 July 2018 which will result in quicker payment than under compulsory acquisition. It is expected that the combination of OZ Minerals’ healthy financial position and Avanco’s suite of high grade and high growth assets will be overwhelming for shareholders of OZ Minerals. It will provide positive synergy benefits and will be earnings accretive for OZ Minerals shareholders by year two.


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