Corona to buy Avalonp change oil & gas holdings

The plan calls for Corona to become the majority owner of North American oil and gas producer Avalon Corp., which would acquire Corona’s 25% interest in Poco Petroleum’s and Corona’s industrial mineral interests. Also, the Canadian oil and gas operations of Avalon would be transferred to Poco.

The arrangement will allow Corona, a major North American gold producer, to become purely a precious metals company.

Corona will offer $7.375(US) for each share of Avalon common and preferred stock. The company says Avalon’s largest shareholder, The Australian Gas Light Co., which controls 59% of Avalon’s outstanding shares, will participate in the transaction (which is subject to regulatory approval). The intention is that Avalon retain its listing on the New York Stock Exchange, with a minority interest.

Corona’s industrial mineral interests include a mica deposit in Quebec operated by wholly-owned subsidiary Suzorite Mica Products and the Fort Cady colemanite deposit in California from which boric acid can be recovered.

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