Avoca divests SA projects

Avoca Resources has reached a conditional agreement with Victorian-based Rex....

  Avoca Resources has reached a conditional agreement with Victorian-based Rex Minerals for the sale of Avoca’s South Australia Iron Oxide Copper-Gold Project.The Project will form one of the lead projects in the new Rex Minerals IPO, with the company scheduled to list on the ASX in or around August this year. Avoca’s divestment of the Project is conditional upon Rex being admitted to the Official List of the ASX. The consideration to Avoca for the sale of the Project is six million shares in Rex, which, at a listing price of $0.25 per share, is equal to $1.5m. At listing, Avoca will hold an 11 percent interest in Rex. Avoca will further be issued one million four-year options to acquire Rex shares at an exercise price of $0.30 per share. The divestment of the Avoca’s Project to Rex will allow Avoca to maintain its management focus on beginning production at its Trident project at Higginsville this year. Avoca said it would also be free to maintain its aggressive exploration campaign at Higginsville and to commence exploration at Mt Fisher. Avoca will also become a substantial shareholder in a new exploration company with exciting gold and copper-gold prospects in Victoria and South Australia.