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Avocet Mining Plc (AVM)

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Friday 09 February, 2018

Avocet Mining Plc

COMPLETION OF THE SALE OF RESOLUTE LIMITED

RNS Number : 4196E
Avocet Mining PLC
09 February 2018
 

 

 

COMPLETION OF THE SALE OF RESOLUTE (WEST AFRICA) LIMITED TO THE BALAJI GROUP 

 

 

Avocet Mining Plc ("Avocet" or the "Company") announces today that it has completed the sale of Resolute (West Africa) Limited ("Resolute") to the Balaji group of companies (the "Balaji Group") for total consideration of USD 5 million.

On 18 December 2017, the Company announced that it had 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 Sale was expected to occur on 11 January 2018. At the request of the Balaji Group, completion of the Sale had been delayed three times, most recently until 8 February 2018, pending its discussions with a creditor of Resolute.

The transaction involves the assignment of certain intercompany receivables for cash consideration of USD 2.5 million, to be paid at completion, and for a consideration of USD 2.5 million to be satisfied by deferred payments over a period of seven years.

Avocet has received cash proceeds at completion of USD 2 million received from the Balaji Group. Balaji had already paid USD 500,000 to the Company in the form of a non-refundable deposit.

FOR FURTHER INFORMATION PLEASE CONTACT

Avocet Mining PLC

Blytheweigh

Financial PR

J.P. Morgan Cazenove

Corporate Broker

Boudewijn Wentink, CEO
Yolanda Bolleurs, CFO

Tim Blythe

Camilla Horsfall

Megan Ray

Michael Wentworth-Stanley

+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
 
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