Dundee takes over junior Serbia copper-gold deposits developer Avala Resources
Avala Resources Ltd. recently announced the completion of a merger agreement with Dundee Precious Metals Inc. , according to which Dundee will purchase all of the issued and outstanding shares of Avala, which is not owned by the company itself.
Dundee is already the majority shareholder of Avala Resources. Under the transaction, all other ordinary shareholders will receive from Avala for each ordinary share of the Company 0,044 shares of Dundee Precious Metals. Based on the weighted average price of Avala shares the last 10 trading days, the exchange ratio to a premium of 25% of the shareholders of Avala. The agreement provides for the completion of the acquisition by 30 April, 2015
Avala is a junior mining mineral exploration company focused on the exploration and development of gold and copper projects in Serbia including the Timok, Tulare and Lenovac projects.
Timok Gold Project a major, north-trending sediment-hosted gold mineralized belt which includes the Bigar Hill, Korkan, Kraku Pester and Korkan East deposits,
Tulare Copper-Gold Porphyry Project which includes the Kiseljak and Yellow Creek deposits, and
Lenovac Project which is strategically located along the eastern margin of the Timok Magmatic Complex and is the object of an option and joint venture agreement with Rio Tinto Mining & Exploration Limited under which Rio Tinto has the right to earn up to a 75% interest by funding project expenditures of US$40 million over a period of up to 8 years.
Avala’s projects in Serbia are well located to access both major transportation corridors and the markets. The fiscal regime in Serbia is highly supportive of the extractive industries with a 15% corporate tax rate and a 5% NSR royalty.
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