Avocet's 2010 gold production rose

UK gold mining firm Avocet Mining reported on Monday that gold production from North Lanut mine in North Sulawesi increased to 47,580 ounces during 2010 from 46,894 ounces in the same period of 2009.

During the fourth quarter of 2010, gold production reached 12,715 ounces, the highest quarterly production since March 2008 at a cash cost of US$722 per ounce, the company said in statement.

On Dec. 24, 2010, Avocet has signed a binding agreement for the conditional sale of its South East Asian assets to J&Partners, L.P., a private Cayman Islands company, for a cash consideration of US$200 million.

The South East Asian assets include the Penjom mine in Malaysia; the North Lanut mine and Bakan project in North Sulawesi and a number of exploration properties in Indonesia.

The company said completion is conditional on government agency approvals and other conditions precedent, with the result that completion is not guaranteed. The transaction with J&Partners is also subject to certain rights of first refusal (ROFR) held by minority interest parties, the exercise and outcome of which cannot easily be predicted. PT Lebong Tandai (LT), which is controlled by Indonesian mining magnate Jusuf Merukh, owns a 20 per cent interest in PT Avocet Bolaang Mongondow (ABM) and holds a ROFR over the company's 80 per cent interest in ABM. ABM holds the Contract of Work for the North Lanut mine and Bakan project. (denny)