Avocet Mining PLC Expiry of the Standstill Agreement (6933P)
September 04 2017 - 1:00AM
UK Regulatory
TIDMAVM
RNS Number : 6933P
Avocet Mining PLC
04 September 2017
Expiry of the Standstill Agreement
Avocet Mining PLC, ('the Company') announces today that the
standstill agreement between its subsidiary Société des Mines de
Bélahouro SA ('SMB') that operates the Inata gold mine in Burkina
Faso and certain of SMB's financial and trade creditors (the 'Major
Creditors') has expired.
The Major Creditors amongst themselves could not agree on an
extension of the standstill agreement to further concrete strategic
options at hand.
Given the current status of discussions, it is unclear whether
agreement on a restructuring of the balance sheet can be reached
before SMB has exhausted all available sources of financing.
In light of the current circumstances, the boards of both Avocet
and SMB will convene on 8 September 2017 to assess the status of
the discussions with the Major Creditors, SMB's current liquidity
position and its imminent liabilities. The boards will consider all
available options, including the potential filing of an insolvency
petition by SMB. No decision regarding whether or not to file for
insolvency has been made at this time.
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 22 May 2017, the Company announced that it had completed
its agreement to dispose of 40 per cent of the project to Managem,
a Moroccan group listed on the Casablanca stock exchange, 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
MSCUSOVRBVAKRRR
(END) Dow Jones Newswires
September 04, 2017 02:00 ET (06:00 GMT)
Avocet Mining (LSE:AVM)
Historical Stock Chart
From Apr 2024 to May 2024
Avocet Mining (LSE:AVM)
Historical Stock Chart
From May 2023 to May 2024