30th Nov 2015 09:54
LONDON (Alliance News) - Avocet Mining PLC on Monday said its Burkina Faso-based subsidiary has signed a new loan agreement with West Africa-focused retail and commercial bank Coris Bank International.
Société des Mines de Bélahouro SA, the Burkina Faso unit of Avocet, will use the USD8.2 million loan to cover temporary working capital constraints at its Inata mine, which was hit by a disruption to gold shipments and the transportation of supplies during the recent attempted government coup in the country.
In September, members of Burkina Faso's presidential elite guard attempted a failed coup. In October 2014, longstanding president Blaise Compaore had been forced from office by street protests over his plans to serve another five years on top of the 27 he had already been in power.
A transitional government was installed and voting had been due to start in October, but this was thrown into doubt after the attempted coup, which failed and resulted in the presidential guard being disbanded. The election now is going ahead and voting started on Monday
Avocet added the Inata mine has also been hit by an anticipated period of mining lower grades and higher stripping in its north pit.
Shares in Avocet were up 4.8% to 2.20 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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