Avocet Mining PLC Funding Update (9306M)
January 26 2016 - 02:00AM
UK Regulatory
TIDMAVM
RNS Number : 9306M
Avocet Mining PLC
26 January 2016
26 January 2016
Short-term funding arrangement and adoption of FRS 101
Short-term funding arrangement with Elliott Management
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$0.75 million loan funding.
The funding, which is expected to meet the Company's corporate
requirements for approximately three months, is intended to allow
the Company to continue its business review, while exploring longer
term funding options.
The new loan funding represents an increase in an existing loan
agreement with Manchester Securities Corp., an affiliate of
Elliott, signed in January 2015 for US$1.5 million, which will be
amended to a new limit of US$2.25 million at an interest rate of
14%. This loan will be unsecured and repayable on demand.
Notice of Adoption of Financial Reporting Standard 101 ("FRS
101") - Reduced Disclosure Framework
The consolidated financial statements of the Avocet Mining PLC
group of companies ("the Group") have, since 2008, been prepared in
accordance with International Financial Reporting Standards
("IFRSs") as adopted by the European Union.
Following the publication of FRS 100 Application of Financial
Reporting Requirements by the Financial Reporting Council, the
Company is required to change its accounting framework for its
entity financial statements, which are currently prepared under UK
GAAP, for the financial year commencing 1 January 2015.
The Company proposes to adopt the FRS 101 Reduced Disclosure
Framework for the preparation of the Avocet Mining PLC entity
accounts for the year ended 31 December 2015. FRS 101 allows
qualifying entities to adopt IFRSs but with a reduction in the
required level of disclosures.
The Company is obliged to give shareholders the opportunity to
object to the adoption of FRS 101 and the disclosure exemptions
contained therein.
A shareholder or shareholders holding in aggregate five per cent
or more of the total allotted shares in the Company may serve
objections to the use of the disclosure exemptions on the Company,
in writing, to its registered office (5th Floor 15 Old Bailey
London England EC4M 7EF) no later than 26 February 2016.
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
----------------- ------------------------- -------------------------
+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
86,037 ounces of gold in 2014. 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
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