Avocet Mining raises US$11 million from sale of two assets

Avocet Mining Plc said that it has concluded the sale of two more South East Asian assets, namely PT Avocet Mining Services and Avocet Mining (Malaysia) OHQ Sdn. Bhd.

These assets were sold for US$11 million on a debt-free cash-free basis to an affiliate of J & Partners L.P. The sale is expected to result in an estimated pre-tax gain of approximately US$4.5 million, which will be included in the company?s third quarter results.

The sale announcement forms part of the overall disposal of Avocet?s South East Asian assets for a total consideration of US$200 million, as announced on 24 December 2010.

The other two operating mines, Penjom and North Lanut, have also been sold in June 2011. Avocet now received US$181 million of the US$200 million total consideration.

Sale completion in respect of Avocet?s remaining South East Asian assets is still subject to various government approvals.

The company is now targeting completion of the remaining assets during the remainder of 2011. The company will inform the market of any further developments on the disposal of the remaining assets as appropriate.

Avocet Mining Plc is a gold mining and exploration company listed on the AIM market of the London Stock Exchange (AVM.L) and the Oslo B?rs (AVM.OL).

The company?s principal activities are gold mining and exploration in Burkina Faso (as 90 percent owner of the Inata gold mine and 100 percent owner of 8 exploration licences in the B?lahouro region surrounding Inata) and exploration in Guinea. (romel/roffie)