Avocet Mining PLC Additional short-term funding arrangement (7012V)
April 20 2016 - 2:00AM
UK Regulatory
TIDMAVM
RNS Number : 7012V
Avocet Mining PLC
20 April 2016
20 April 2016
Additional short-term funding arrangement
Avocet Mining PLC ("Avocet" or "the Company") announces that it
has agreed terms with its largest shareholder, Elliott Management
("Elliott"), which is the beneficial owner of 27.7% of the
Company's shares, for a further US$0.8 million in loan funding.
The new funding represents an increase to the existing loan
agreement with Manchester Securities Corp., an affiliate of
Elliott, initially signed in January 2015 for US$1.5 million, and
subsequently amended in January 2016 to a revised limit of US$2.25
million at 14% interest. This latest agreement will further
increase the limit of this loan to US$3.05 million. The terms of
this loan will remain unchanged, which will be unsecured and
repayable on demand.
The funding is expected to meet the Company's corporate
requirements for approximately four months, and is intended to
allow the Company to continue its business review, particularly
with respect to securing finance for the Tri-K project in
Guinea.
This latest funding, once drawn down, will increase the total
debt owed by the Company to Manchester Securities Corp to
approximately US$24.8 million.
FOR FURTHER INFORMATION PLEASE CONTACT
Avocet Mining PLC Bell Pottinger J.P. Morgan Cazenove
Financial PR Consultants Corporate Broker
================= ========================= =========================
David Cather, CEO Daniel Thöle Michael Wentworth-Stanley
Jim Wynn, FD
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+44 20 3709 2570 +44 20 2772 2500 +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% of the Inata Gold Mine. The
Inata Gold Mine poured its first gold in December 2009 and produced
74,755 ounces of gold in 2015. 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 kilometres from the Inata Gold Mine.
In Guinea, Avocet owns 100% of the Tri-K Project in the north
east of the country. Drilling to date has outlined a Mineral
Resource of 3.0 million ounces, and in October 2013 the Company
announced a maiden Ore Reserve on the oxide portion of the orebody,
which is suitable for heap leaching, of 0.5 million ounces. As an
alternative, the potential exists to exploit the entire 3.0 million
ounce Tri-K orebody via the CIL processing method. The Company
announced on 2 April 2015 that an exploitation permit had been
awarded for Tri-K.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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