Information  X 
Enter a valid email address

Avocet Mining PLC (AVM)

  Print   

Wednesday 16 June, 2010

Avocet Mining PLC

AGM Presentation and Corporat

RNS Number : 6994N
Avocet Mining PLC
16 June 2010
 



AVOCET MINING PLC

 

Annual General Meeting Presentation and Corporate Update

 

Avocet Mining PLC ("Avocet" or the "Company") announces that the presentation to be given to shareholders at the Annual General Meeting today at 3pm is now available on the Company's web site at www.avocet.co.uk.  The presentation provides an update on recent developments, including the Company's listing today on the Oslo Stock Exchange, as well as illustrating the strategic direction in each of its geographic regions.  Highlights of the presentation are set out below.

 

Recent developments:

 

·     Gold production in Q1 2010 of 44,877 ounces, up 73 per cent on the previous quarter due to a first contribution from Inata;

 

·     Inata production of 10,568 ounces in May 2010;

 

·     Electro-Magnetic (VTEM) airborne survey at Belahouro is 76% complete - to be completed in June 2010;

 

·     Remodelling of the Inata gold deposit almost complete, following relogging of all drill holes

 

resource upgrade report due in August 2010;

accelerated drilling programme planned for second half designed to double reserves - reserve upgrade report by Q3 2011;

 

·     Drilling commenced at Souma trend in May 2010

 

initial results to be released by end of June;

resource model report in November 2010; and

 

·     Oslo listing and first day of trading to take place today - retail offer successfully completed, with issue of 1.2 million shares.

 

Strategic direction:

 

·     Strategic review underway to maximise value from the South East Asian assets;

 

·     Focus on realising and growing the potential of Inata, including production expansion;

 

·     Accelerated organic growth in Belahouro and in Guinea;

 

·     Targeted acquisitions - only where accretive and long term value is added;

 

Brett Richards, Interim CEO, commented:

 

"A series of changes has recently occurred within the organisation which has resulted in the Company reviewing its strategic mandate in how best to deliver sustainable long term value to its shareholders.   These changes have resulted in a new revitalised focus in West Africa, while conducting a process to ensure the assets in South East Asia deliver the best possible value."

 

For further information please contact:

 

Avocet Mining PLC
Buchanan Communications
Ambrian Partners Limited
J.P. Morgan Cazenove
Arctic Securities
First Securities
 
Financial PR Consultants
NOMAD and Joint Broker
Lead Broker
Financial Adviser
Financial Adviser
Brett Richards, Interim CEO
Mike Norris, FD

Hans-Arne L'orange, EVP Business Development & Investor Relations

Bobby Morse

Katharine Sutton

Richard Brown

Richard Greenfield

Michael Wentworth-Stanley
Anish Patel

Arne Wenger

Kim Galtung Døsvig

Stein Hansen

Eirik Lilledahl

 

+44 20 7766 7676

+44 20 7466 5000

+44 7802 875227

+44 20 7634 4700

+44 20 7588 2828

+47 21013100

+47 2323 8000

www.avocet.co.uk

www.buchanan.uk.com

www.ambrian.com

www.jpmcazenove.com

www.arcticsec.no

www.first.no

 

 

Notes to Shareholders

 

Current shareholders should be aware that the OSE is a regulated market for UK tax purposes, and Avocet shares will therefore no longer be considered as "unquoted" within the UK tax regime from the date of listing. One likely consequence is that Avocet shares will no longer qualify for UK Inheritance Tax Business Property Relief. However, it is possible that Avocet shares will qualify for inclusion in certain UK tax-efficient savings structures, such as ISAs from the date of listing.

 

As a "host" exchange, the OSE will require Avocet to comply with its continuing Disclosure regime (which is largely equivalent to that on AIM).   The regulation of a take-over situation will be "split" between Norway and the UK. Issues relating to the securities law aspects of the offer (including offer price, offer period, offer procedure, information on the bidder's decision to make a bid, the content of the offer document, the publication of the bid) will be subject to Norwegian regulation, but issues relating to the company law aspects of the offer (including information to be provided to employees and thresholds that trigger the offer) will be subject to UK regulation.

 

Please note that neither Avocet nor its advisors are able to offer tax, legal, accounting or other professional advice. Shareholders unsure of their position in respect of tax or other financial aspects should consult their own professional advisers.

 

Notes to Editors

 

Avocet Mining PLC ("Avocet" or "the Company") is a gold mining company listed on the AIM of the London Stock Exchange (Ticker: AVM) and as of 16 June 2010 is also listed on the Oslo Stock Exchange (Ticker: AVM).  The Company's principal activities are gold mining and exploration in Burkina Faso (as 90 per cent owner of the Inata gold mine), Malaysia (as 100 per cent owner of the Penjom gold mine) and Indonesia (as 80 per cent owner of the North Lanut gold mine and Bakan project in North Sulawesi).

 

The Company recently announced that it had initiated exploration within the Inata Mining License area and in the surrounding Belahouro district with the objective of significantly increasing Inata's resource and reserve base as well as investigating the highly prospective Souma Trend.  The Company has a number of other advanced exploration projects in West Africa and South East Asia.

 

Background to operations

Inata has a resource of 1.7 million ounces and reserves of 932,000 ounces.  Inata poured first gold in December 2009 and as of May 2010 has ramped up to full production rates in excess of 10,000 ounces per month. Other assets in West Africa include exploration licences in Burkina Faso, Guinea and Mali (the most advanced being the Tri-K gold exploration project in Guinea with a resource of 666,500 ounces).

 

Penjom is Malaysia's largest gold mine and was developed by Avocet after applying modern technology to grass roots exploration in an area of historic alluvial mining. The mine is located in Pahang State, approximately 120 km north of the country's capital, Kuala Lumpur.

 

North Lanut in North Sulawesi, Indonesia, was developed by Avocet from the exploration stage and has produced over 270,000 ounces since it was commissioned in 2004.  North Lanut is located within a Contract of Work which includes exploration and mining rights over approximately 50,000 hectares in an area highly prospective for gold.  Avocet holds an 80 per cent interest and an Indonesian company, PT Lebong Tandai, owns the remaining 20 per cent.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
AGMLIFSTRLIRLII

a d v e r t i s e m e n t