Avocet Mining Chairman And Directors Resign Amid Major Restructuring

19th Mar 2018 11:19

LONDON (Alliance News) - Avocet Mining PLC said Monday that Chairman Russell Edey and two fellow directors tendered their resignations with immediate effect as the troubled natural resources firm continues to restructure in order to meet its debt obligations.

Chairman Edey and directors Gordon Wylie and Jim Wynn all resigned as a result of the reduced size of the firm. Boudewijn Wentink remains an executive director and Barry Rourke a non-executive director.

The resignations come amid efforts to restructure the firm including through disposals in order to be able to meet the obligations of USD29.2 million in overdue debt owed by Avocet to Manchester Securities Corp, an investment vehicle of US hedge fund Elliott Associates LP.

On Friday, Avocet sold Wega Mining AS for USD400,000 which followed the sale of its Burkina Faso assets in early February for USD5.0 million. Resolute (West Africa) Ltd - which includes the Inata gold mine in Burkina Faso - was sold to Balaji Group after a series of delays.

"With the company's stake in the Tri-K development joint venture with Managem now being its only asset, the size of the board is no longer appropriate," the company explained on Monday.

Avocet emphasised discussions with Elliott were still on-going about restructuring its overdue loans.

Shares in Avocet were 1.7% higher at 14.75 pence on Monday.

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