Avocet Mining PLC Funding Update (9557U)
August 04 2015 - 2:01AM
UK Regulatory
TIDMAVM
RNS Number : 9557U
Avocet Mining PLC
04 August 2015
04 August 2015
Draw down of funds under the short term loan funding arrangement
with Elliott
Avocet Mining PLC ("Avocet" or "the Company") announces that it
has drawn down further funds under the Third Elliott Loan Facility
agreed with Manchester Securities Corp. ("the Elliott Lender"), an
affiliate of the Company's largest shareholder, Elliott Management
Corporation ("Elliott"). Elliott is interested in approximately
27.69% of the Company's issued share capital (comprising a direct
interest in ordinary shares amounting to approximately 13.51% of
the total voting rights in the Company and a purely economic
interest, without voting rights, in approximately 14.18% of the
total number of ordinary shares with voting rights).
The terms of the Third Elliott Loan Facility, including security
in favour of the Elliott lender ("the Elliott Security"), as set
out in the circular posted on 22 May 2015, were approved at a
general meeting on 19 June 2015.
The Third Elliott Loan Facility for up to, in aggregate, US$2.4
million, comprises three separate facilities, being:
-- an initial facility of US$1.5 million which was drawn down on
24 April 2015 ("the Initial Facility");
-- a second facility of up to US$1.8 million to provide
additional working capital of up to US$0.3 million to the Company
in respect of finalising the Elliott Security and to repay the
Initial Facility ("the Second Facility"); and
-- a third facility of, in aggregate, US$0.6 million comprising
three tranches of US$0.2 million each, originally intended to be
drawn down on or about the first business day of each of July,
August and September 2015, at the sole discretion of the Elliott
Lender at the time of each respective draw down request ("the Third
Facility").
The Company announces today that it has drawn down the US$1.8
million Second Facility, of which US$1.5 million is to repay
principal and accrued interest under the Initial Facility, and the
remaining US$0.3 million is to finalise the Elliott Security.
The Company has also drawn down the first tranche of US$0.2
million under the Third Facility. The Company expects to submit two
further draw down requests under the Third Facility as required
over the coming months.
With the funds already in hand, and assuming it is able to draw
down the remaining US$0.4 million amount due under the Third
Facility, the Company expects to have sufficient funds to meet its
corporate requirements through to the end of October 2015, allowing
it to continue its business review, while exploring longer term
funding options. As part of the business review Avocet continues to
consider options for maximising the value of its assets for the
benefit of shareholders, including its Inata mine and the adjacent
Souma deposit in Burkina Faso, and its Tri-K development project in
Guinea.
The Company is scheduled to announce its interim results on 24
August.
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
Mike Norris, 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
eight 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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