10 June 2009
PALA CONVERTS A$14.8M OF
CONVERTIBLE BONDS
ASX 200 mid-tier gold producer, Avoca Resources Ltd (ASX:AVO),
is pleased to announce that its major shareholder, Pala Investments AG (Pala)
has elected to convert its A$14..8 million holding of Avoca?s convertible bonds
(issued on 14 May 2007) at a conversion price of $1.741 per share. The
convertible bonds carry a 6% coupon and are redeemable on or before 14 May
2012. Following Pala?s conversion, there is A$23.2 million of convertible
bonds outstanding.
The conversion of Pala?s holding results in the issue
to Pala of 8,500,862 shares (Appendix 3B attached) and an expanded issued
capital for Avoca of 257,403,828 shares. Pala?s holding in Avoca
increases from 19.88% to 22.51%.
Avoca?s Managing Director Rohan Williams said ?we are
pleased that Pala has elected to convert its convertible bonds early and continues
to support Avoca in its ambition to become Australia?s
premier mid-tier gold producer.?
For further information please contact:
Avoca Resources: Rohan
Williams, 08 9226 0625
Purple
Communications: Warrick Hazeldine,
08 6314 6300 / 0417 944 616
Please Note:
Not for dissemination in
the United States, or over U.S.
newswire services.
Avoca
Background
Avoca
is an ASX 200 gold mining and exploration company based in Perth,
Western Australia. Avoca has grown
rapidly since its listing in 2002, and its acquisition of the Higginsville
exploration project in 2004, located 130km south of Kalgoorlie.
Following the discovery of the
Trident underground gold mine at Higginsville in late 2004, and the subsequent
construction of the Higginsville Gold Project which included a new 1 million
tonne per annum CIL treatment facility built on time and under budget; it
poured its first gold bar on 1 July 2008. The time taken from exploration
project acquisition to gold pour was exactly four years. Presently,
Trident is Western Australia?s
third largest underground gold mine and has recently commenced mining the thick
and high grade 1005 level, which has contributed to record gold production
levels. Avoca remains confident it will produce 180,000 ounces of gold in
FY2010 at a cash cost of A$450 per ounce (not including royalties).
Avoca has a highly credentialed
management team with considerable expertise in exploration, project development
and underground mining. Avoca?s managing director, Rohan Williams, has
more than 15 years experience in the region having worked as a geologist at the
+15 million ounce St Ives field immediately north of Higginsville, and the +6
million ounce Norseman field immediately to the south.
The Avoca Board is confident that
its management team will continue to expand and develop the existing 1.45
million ounce Higginsville resource base into realising its goal of a +10 year
mine life for Higginsville.
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