London-based
Avocet will subscribe for 2.75 million units in Dynasty’s 8.6-million-unit private placement. The units, priced at 18, have an attached warrant exercisable at 30 for a year; the placement raises $1.55 million. Avocet is also buying shares and rights from two individual and two corporate shareholders of Dynasty.
The matchmaker in the deal was London-listed explorer
Dynasty is earning an 80% interest in Hatu, where the main Qi-2 deposit has an inferred resource of 16.9 million tonnes grading 1.7 grams gold per tonne. The funding from the placement is to be used for infill drilling to bring the resource into the measured and indicated category.
Avocet reported net income of US$3.4 million on revenues of US$42.7 million in the 6-month period ended Sept. 30. That compared with half-year earnings in Sept. 2004 of US$4.6 million, on revenue of US$32.6 million. The company has recently bought a mining fleet for its North Lanut heap-leach gold mine in Indonesia, and done substantial waste stripping at its Zeravshan open-pit gold mine in Tajikistan.
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