12th Jun 2014 13:29
LONDON (Alliance News) - Avocet Mining PLC Thursday said it has taken further steps to reduce costs and capital expenditure for its Inata gold mine operation in Burkina Faso, and is still in discussions over the repayment of a loan to its biggest shareholder Elliot Management.
The west African gold mining and exploration company owns 90% of the Inata Gold Mine in Burkina Faso and own 100% of the Tri-K Project in the north east of Guindea.
In a statement Thursday, Avocet Mining said it is still in talks with multiple parties about a range of potential investments or asset sales in order to repay its outstanding loan to Elliott Management, as well as ensuring it has adequate working capital for the company and Inata for 2014.
US hedge fund Elliott Associates LP holds a 12.88% shareholding in the company.
Avocet Mining said that while talks are continuing, it has taken further steps aimed at reducing costs and minimising capital expenditure at Inata, managing the mine's limited cash resources in the period leading up to commissioning of the new carbon blinding circuit.
Following commissioning of the carbon blinding circuit, which is now expected in September this year, the Inata gold mine is expected to process higher grade carbonaceous ore at higher recoveries.
Avocet Mining shares were up 1.4% at 7.58 pence Thursday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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