5th Sep 2018 12:32
LONDON (Alliance News) - Avocet Mining PLC said Wednesday that it has transferred 30% of its Tri-K gold project in Guinea to Moroccan mining group Managem SA.
The two companies agreed in 2016 that Managem would acquire a 70% interest in the project upon an initial payment of USD4 million for 40%, the completion of a USD10 million work programme, and the production of a feasibility study with a reserve of at least 1 million ounces.
In May, the company transferred the 40% stake in the project to Managem upon receiving USD4 million. While at the beginning of August, Managem sent the Avocet an overview of the work programme, the costs incurred as part of that programme, and a feasibility study indicating a reserve of approximately 1.1 million ounces.
Avocet said: "The company has now transferred the remaining 30% of the Tri-K project and the related shareholder loans to Managem."
"However, a discussion is ongoing between the parties regarding a significant overspend of the costs incurred as part of the work programme."
Avocet shares were trading up 2.1% at 11.97 pence each.
Related Shares:
AVM.L