Lebong Tandai files law suit against Avocet Mining

UK mining firm Avocet Mining PLC reported Wednesday that it has been informed a law suit has been filed in the Indonesian courts against the company by PT Lebong Tandai, its partner in Indonesia, over the proposed US$200 million sale of its South East Asian assets to J&Partners, a private company backed by Indonesian businessmen.

The company has not been served with a law suit but has been informed that PT Lebong Tandai has filed a claim in the Jakarta courts. Comments attributed to PT Lebong Tandai in the Indonesia press, as related in the company's press release of 8 March 2011, indicate that the basis for a law suit would be on the grounds that Avocet acted unlawfully by entering into the transaction while still in negotiations with PT Lebong Tandai.

As stated in its press release of 8 March 2011, Avocet is confident that all actions it has taken in respect of the transaction have been in accordance with prevailing rules and regulations and there are no grounds for any such legal action. Should a law suit be served on Avocet, the company believes it would be baseless and will defend itself vigorously. (romel/kanti)