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More merger news between Canada and Australia Add to ...

TSX-listed Anatolia Minerals Development Limited and ASX-listed Avoca Resources Limited are combining to create Alacer Gold Corp., what they're calling an "intermediate global gold producer." Combined, the two companies have a market cap of around $2-billion (U.S.).

At the moment, both are considered junior resource plays, but they hope that together they'll get more clout. Anatolia is known for its Copler Gold Project in Turkey, which holds about six million ounces of gold reserves and resources, while Avoca is an Australian based miner.

Within the deal, each Avoca share will be exchanged for 0.4453 Anatolia common shares, and after the shares are transferred over, Anatolia and Avoca shareholders will each own around 50 per cent of the new company.

The merger is a friendly one, with directors on both boards unanimously support it and each firm has agreed to not solicit alternative offers. If the merger is approved, Alacer will be listed on both the TSX and the ASX.

Pala Investments Holdings Ltd., the largest shareholder of both Avoca and Anatolia, has already given its support and will be able to name one person to the new nine-person board. The two merging firms will split the remaining seats.

Corporate offices will remain in Denver, Co., Ankara, Turkey and Perth, Australia.

BMO Capital Markets and Stikeman Elliott LLP provided Anatolia with financial and legal advice in Canada while Borden Ladner Gervais LLP was Avoca's Canadian legal advisor.

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