Avocet Mining PLC Sale of Resolute Limited to the Balaji Group (6782B)
12 January 2018 - 6:00PM
UK Regulatory
TIDMAVM
RNS Number : 6782B
Avocet Mining PLC
12 January 2018
Sale of Resolute (West Africa) Limited
to the Balaji Group
Avocet ("Avocet" or the "Company") announces today that, at the
request of the Balaji group of companies (the "Balaji Group")
completion of the sale of Resolute (West Africa) Limited
("Resolute") to the Balaji group, as announced by the Company on 18
December 2017, has been deferred to 25 January 2018.
On 18 December 2017, the Company announced that it has entered
into an agreement to sell all of its assets in Burkina Faso,
including the Inata goldmine, together with certain receivables of
the Company's group to the Balaji Group for a total consideration
of USD 5 million (the "Sale"). Completion of the transaction was
expected to occur on 11 January 2018.
The Balaji Group had entered into discussions with International
Royalty Corporation ("IRC"), a creditor of Resolute, under a threat
of insolvency of Resolute. Against this background, Balaji has
requested the deferral of completion of the Sale to 25 January 2018
to be able to finalise a settlement of IRC's claim.
This request has been granted to defer and the deposit of USD
500,000 referred to in the announcement of 18 December 2017 has now
been paid to the Company. This amount will be retained by the
Company whether or not completion of the sale occurs. If completion
of the sale does occur, it will form part of the cash consideration
payable by the Balaji Group in respect of the novation by the
Company to the Balaji Group of certain receivables owed to it by
SMB and Goldbelt.
The terms and conditions of the Share Purchase Agreement, as set
out in the announcement of 18 December 2017, have not been
materially changed, other than to reflect the deferral of the
Completion Date and the introduction of an extension fee payable by
Balaji in the event of a further extension.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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