16th Mar 2018 11:28
LONDON (Alliance News) - Avocet Mining PLC said Friday it sold its Norwegian subsidiary for USD400,000 as it continues to seek restructuring of its USD29.2 million overdue loans.
Avocet sold Wega Mining AS to Natholmen AS for USD400,000 in cash for which it has already received the proceeds.
The deal sees Avocet sell the share capital in Wega for a nominal USD1.00. The sale of additional inter-company receivables, however, takes the total consideration to USD400,000.
The proceeds from the sale may be used as partial repayment of the USD29.2 million in overdue debt owed by Avocet to Manchester Securities Corp, an investment vehicle of US hedge fund Elliott Associates LP.
Avocet added discussions with Manchester Securities regarding teh restructuring of the debt was still continuing.
The sale follows Avocet's disposal of its Burkina Faso assets in early February for USD5.0 million. Resolute (West Africa) Ltd - which includes the Inata gold mine - was sold to Balaji Group after a series of delays.
Shares in Avocet were 3.5% higher at 15.00 pence on Friday.
Related Shares:
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