Avocet announces partial completion of SE assets sale

UK mining firm Avocet Mining PLC announced Monday that it has completed the sale of the majority of its South East Asian assets, as part of the US$200 million sale agreement announced on 24 December 2010.

The Company has completed the sale of its 100 per cent interest in the Penjom Gold Mine in Malaysia and its 80 per cent interest in PT Avocet Bolaang Mongondow, which owns the North Lanut mine and Bakan project in North Sulawesi for proceeds of US$170 million.

The completion of the sale of Avocet's other South East Asian assets pursuant to the same sale agreement is expected to occur during Q3 2011, following receipt of necessary government approvals, the company said, adding that the remaining properties included four exploration properties in Indonesia and one in Malaysia.

Following an assignment agreement dated 20 June 2011, the counterparty for the completed sale announced Monday, and for the sale of the remaining assets, is PT Bara Kutai Energi, an affiliate of J&Partners, L.P., which was the original buyer announced on 24 December 2010.

J&Partners, L.P. is a mining fund established by Jimmy Budiarto, a member of the Indonesian family that in November 2009 sold its interest in Indonesia's second largest mining contractor, PT Bukit Makmur Mandiri Utama (BUMA). The principals in J&Partners are Jimmy Budiarto and Chris Hui, former Head of Investment Banking for Barclays Capital in China and Hong Kong. (alex)