Avocet denies selling gold mines to Merukh

UK mining firm Avocet Mining Plc on Monday denied that it had concluded sale of its producing gold mines in Indonesia and Malaysia to PT Merukh Enterprises, a company controlled by mining magnate Jusuf Merukh.

?Avocet Mining notes press speculation that it has sold its South East Asian mines, consisting of North Lanut and Penjom, in a transaction worth approximately US$250 million to PT Lebong Tandai, a wholly owned subsidiary of PT Merukh Enterprises. PT Lebong Tandai currently owns 20% of Avocet's North Lanut mine and Bakan project in Indonesia. Reports that a sale has been concluded are incorrect. Discussions with potential interested parties remain at a very preliminary stage and may or may not result in a sale of Avocet's South East Asian assets. A further announcement will be made when appropriate, the Company said.

Avocet's South East Asian assets include two producing mines, North Lanut in Indonesia, and Penjom in Malaysia, which in the last 12 months produced over 107,000 ounces of gold. The portfolio also includes exploration and development projects in Indonesia. (alex)