4th Jul 2018 18:29
LONDON (Alliance News) - Avocet Mining PLC said on Wednesday it saw a widened pretax loss for 2017 due to the disposal of Tri-K assets.
Avocet is a gold mining and exploration company focused on West Africa.
The company reported a pretax loss of USD18.5 million, widened from USD4.4 million in 2016, due to the transfer of intangible assets in Wega Mining Guinea as part of a first closing of 40% of a novated loan of USD34.8 million to Société des Mines de Mandiana SA, leading to a one-off expense of USD18.8 million.
Avocet generated no revenue for 2017.
In March, Chairman Russell Edey and directors Gordon Wylie and Jim Wynn all resigned as as the troubled natural resources firm continued its restructuring process in order to meet its debt obligations.
"Avocet's stake in the Tri-K project will decrease to 30% at the Second Closing, provided the work programme and its objectives agreed in the agreements are achieved. Indications are that Managem spent at least USD10 million as per year-end. Second closing is expected in 2018," said Chief Executive Officer Boudewijn Wentink.
"Next step will be the raising of funding for construction. This is likely to include a portion of debt, with the equity contribution to be shared pro rata between Managem and Avocet. Under the terms of the agreement, Avocet has the right to decline to contribute its percentage of this cost, which would then require Managem to contribute all of the equity, diluting Avocet's interest proportionately," Wentink added.
Shares in Avocet Mining closed down 1.1% at 13.95 pence on Wednesday.
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AVM.L