Tri-k Update

Tri-K update

Avocet Mining Plc ("Avocet" or the "Company") confirms that it has received from Managem SA ("Managem"), a Moroccan mining group listed on the Casablanca stock exchange, an exercise notice in relation to the second closing of the Tri-K transaction, its gold project in Guinea.

On 10 October 2016, Avocet announced that it had entered into an agreement with Managem, under which Managem would ultimately hold an interest of 70 per cent in the project conditional upon (a) an initial payment of US$4 million for 40 per cent of the project and related shareholder loans, (b) the completion of a US$10 million work programme, and (c) the production of a bankable feasibility study for an operation with a reserve of at least 1 million ounces. 

On 22 May 2017, Avocet received from Managem US$4 million for 40 per cent of the project and related shareholder loans as part of the first closing.

The Company has now received an exercise notice in relation to the transfer of the remaining 30 per cent of the Tri-K project to be completed on 4 September 2018. With this exercise notice, Managem sent 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.

At present, the Company is in the process of assessing whether the conditions for second closing of the Tri-K transaction have been met.

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NOTES TO EDITORS

Avocet Mining PLC ("Avocet" or the "Company") is a gold mining and exploration company listed on the London Stock Exchange (ticker: AVM.L) and the Oslo Børs (ticker: AVM.OL). The Company's principal activity is gold exploration in Guinea, West Africa: the Tri-K project.