18th Jun 2019 16:22
(Alliance News) - Avocet Mining PLC said Tuesday it had sold its remaining interest in a Guinea gold mine for USD21 million as it looks to restructure its overdue loans to a subsidiary of US hedge fund Elliott Associates LP.
Avocet has been in discussions with Manchester Securities Corp - a unit of Elliott - about a restrucutre of the USD32.2 million owed to Manchester by Avocet. In light of this, Avocet has already sold its assets in Burkina Faso as well as its subsidiary Wega Mining AS.
This left only its 30% stake in the Tri-K gold mine in Guinea within its portfolio. Avocet has now sold this stake to joint venture partner Managold Ltd for USD21 million.
Avocet will utilise the funds received from the sale to settle its debts. After this is completed, this "leaves the company a minimal residual cash sum while it considers its future strategy."
"The board of the company is currently considering the future strategy of Avocet," the firm added. "Options being considered include entering into new investments or other commercial arrangements or the orderly winding up of the company. A further announcement will be made in due course."
Shares in Avocet were suspended in London on Tuesday, last having traded at 13.10 pence.
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