Aim-listed gold miner Avocet Mining has transferred the remaining 30% of its Tri-K gold project, in Guinea, to Managem SA – a Moroccan mining group listed on the Casablanca Stock Exchange.
On October 10, 2016, Avocet announced that it had entered into an agreement with Managem, under which Managem would ultimately gain an interest of 70% in the project conditional upon an initial payment of $4-million for 40% of the project and related shareholder loans, as well as the completion of a $10-million work programme and the production of a bankable feasibility study for an operation with a reserve of at least one-million ounces.
In May 2017, Avocet received the $4-million for 40% of the project and related shareholder loans as part of the first closing.
On August 3, this year, Managem sent Avocet an overview of the work programme, the costs incurred as part of that programme, and a feasibility study indicating a reserve of about 1.1-million ounces, which secured it a further 30% of the project.
Avocet is selling its assets as part of a larger restructuring effort to settle its overdue loans totalling $28.8-million to creditor Manchester Securities.
The miner is taking all practicable actions to minimise costs and streamline its remaining responsibilities, activities and group structure.