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
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
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
Boudewijn Wentink, CEO
Yolanda Bolleurs, CFO
+44 20 3709 2570
Financial PR Tim Blythe
+44 207 138 3204
J.P. Morgan Cazenove
+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.