Avocet Mining PLC Standstill agreement agreed with Inata's creditors (6265G)
31 May 2017 - 4:00PM
UK Regulatory
TIDMAVM
RNS Number : 6265G
Avocet Mining PLC
31 May 2017
Standstill agreement agreed with
Inata's major creditors
Avocet Mining PLC, ('Avocet' or 'the Company') is pleased to
announce today that its subsidiary Société des Mines de Bélahouro
SA ('SMB') that operates the Inata gold mine in Burkina Faso, has
entered into a standstill agreement with its major trade and
financial creditors - a key milestone in SMB's balance sheet
restructuring process.
As announced earlier, SMB is in discussions with trade
creditors, banks and government to stabilize SMB and with a view to
restructure its balance sheet.
In this process a key step has now been achieved: SMB, its major
trade and financial creditors - together representing approximately
seventy per cent of SMB's debt - have agreed the terms of a
standstill agreement for the duration of two months as strategic
options are being explored in connection with a financial, debt and
corporate restructuring of the SMB.
Pursuant to this agreement, SMB's major trade creditors and its
bank shall refrain from exercising their rights and remedies, and
taking any legal action to protect and preserve such rights and
remedies, in relation to their outstanding debts. In turn, SMB
agreed to a payment scheme for deliveries of services and goods
during the standstill period that provides for payments thereof in
sync with the receipt of the gold proceeds by SMB, once the mine
has resumed its full operation.
The standstill agreement is part of a complex process. As SMB
moves on with the implementation of the agreement, it will have to
ensure the support of all stakeholders. All of them (including
creditors, government, key operational stakeholders and employees)
will need to contribute to achieve a consensual restructuring
solution. The backing of SMB's major trade creditors and its bank
is greatly appreciated and gives the process momentum.
- END -
FOR FURTHER INFORMATION PLEASE CONTACT
Avocet Mining PLC Blytheweigh J.P. Morgan Cazenove
Financial PR Corporate Broker
Boudewijn Wentink, CEO Tim Blythe Michael Wentworth-Stanley
Yolanda Bolleurs, CFO Camilla Horsfall
Megan Ray
+44 20 3709 2570 +44 207 138 3204 +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 per cent of the Inata Gold
Mine. The Inata Gold Mine poured its first gold in December 2009
and produced 72,485 ounces of gold in 2016. 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 per cent of the project to Managem, a
Moroccan group listed on the Casablanca stock exchange, which,
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
per cent (in the event of an increase of the reserve to 1 million
ounce or more) or 60 per cent (if less than 1 million ounces).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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