JOHANNESBURG (miningweekly.com) – Aim-quoted Avocet Mining on Wednesday said it had secured a $1.5-million loan from an affiliate of its largest shareholder Elliott Management.
The unsecured demand loan, with an interest rate of 12%, from the 27.7% shareholder’s affiliate, Manchester Securities Corp, would meet Avocet’s corporate requirements for the next three months, while it explored longer-term funding options.
It would also enable Avocet to progress its business review, which would consider options for maximising the value of its assets for the benefit of shareholders, including its Inata mine and adjacent Souma deposit, in Burkina Faso, and the Tri-K development project, in Guinea.
Meanwhile, Avocet had resumed limited operations at Inata's process plant to allow the processing of stockpiled ore, while the group progressed plans for a full resumption of operations, including mining activities, after a week-long illegal strike halted operations in December.
Workers at the Inata gold mine downed tools on December 4, illegally occupying the mine and preventing management access to the mine or plant, following talks with workforce representatives over cost-cutting initiatives to keep Inata operational.
The company was in the process of determining the optimal revised manning structures after the subsequent dismissal of about 300 employees.