Avocet Mining PLC Temporary agreement reached at Inata (2135Q)
26 November 2016 - 1:30AM
UK Regulatory
TIDMAVM
RNS Number : 2135Q
Avocet Mining PLC
25 November 2016
Temporary agreement reached regarding gold seizure at Inata
Further to the announcement on 23 November, Avocet Mining PLC
("Avocet" or "the Company") announces that a temporary agreement
has been reached in connection with the gold seizure at the Group's
Inata gold mine in Burkina Faso, as a result of which the gold
under seizure will be released, workers have returned to site and
gold sales and production will recommence over the coming days.
Under the terms of this agreement, Société des Mines de
Bélahouro SA ("SMB", the Group subsidiary which owns the Inata gold
mine) will work with the ex-workers to agree a final settlement
over the next 30 days.
If a settlement is not reached within the next 30 days, there
remains a risk that production and gold sales will need to be
suspended again if there was any risk of further gold seizures.
The Company intends that, with the resumption of gold sales,
payment of management fees by SMB to the Company will also
recommence, without which the Company would need to obtain third
party funding in order to meet its head office and corporate costs
falling due in December. If no funding were obtained either from
Inata or a third party, as announced previously, it is likely that
the Company will enter an insolvency process, in which circumstance
it is highly unlikely that any value will remain for
shareholders.
Further updates will be provided in due course.
FOR FURTHER INFORMATION PLEASE CONTACT
Avocet Mining PLC Bell Pottinger J.P. Morgan Cazenove
Financial PR Consultants Corporate Broker
David Cather, CEO Lorna Cobbett Michael Wentworth-Stanley
Jim Wynn, FD
+44 20 3709 2570 +44 (0)20 3772 2500 +44 20 7742 4000
NOTES TO EDITORS
Avocet Mining PLC ("Avocet" or the "Company") is an unhedged
gold mining and exploration company listed on the London Stock
Exchange (ticker: AVM.L) and the Oslo Børs (ticker: AVM.OL). The
Company's principal activities are gold mining and exploration in
West Africa.
In Burkina Faso the Company owns 90% of the Inata Gold Mine. The
Inata Gold Mine poured its first gold in December 2009 and produced
74,755 ounces of gold in 2015. Other assets in Burkina Faso include
five exploration permits surrounding the Inata Gold Mine in the
broader Bélahouro region. The most advanced of these projects is
Souma, some 20 kilometers from the Inata Gold Mine.
The Company also holds an interest in the Tri-K project in
Guinea. On 10 October 2016, the Company announced that it had
agreed to dispose of 40% of the project to Managem, a Moroccan
group listed on the Casablanca stock exchange, subject to, inter
alia, shareholder approval, and which will increase upon completion
of a bankable feasibility study for a CIL plant at the site, the
incurring of expenditures of at least US$10 million, and the
enlarging of the ore reserve, to 70% (in the event of an increase
of the reserve to 1 million ounce or more) or 60% (if less than 1
million ounces).
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCFEUFLIFMSESF
(END) Dow Jones Newswires
November 25, 2016 09:30 ET (14:30 GMT)
Avocet Mining (LSE:AVM)
Historical Stock Chart
From Jul 2024 to Aug 2024
Avocet Mining (LSE:AVM)
Historical Stock Chart
From Aug 2023 to Aug 2024