JOHANNESBURG (miningweekly.com) – Aim-listed Avocet Mining has drawn down further funds under the third Elliott loan facility of about $2.4-million, agreed with Manchester Securities, an affiliate of the company's largest shareholder Elliott Management Corporation.
The funds would be used to meet Avocet’s corporate requirements through to the end of October, allowing it to continue its business review, while exploring longer-term funding options.
The loan comprised three separate facilities, including an initial facility of $1.5-million, which was drawn down on April 24; a second facility of up to $1.8-million to provide additional working capital of up to $300 000 to the finalise the Elliott security and to repay the initial facility; and a third facility of $600 000, comprising three tranches of $200 000 each, originally intended to be drawn down on or about the first business day of July, August and September.
The company expected to submit two further draw down requests under the third facility over the coming months.
Avocet continued to consider options for increasing the value of its assets, including its Inata mine and the adjacent Souma deposit, in Burkina Faso, and its Tri-K development project, in Guinea.