Merukh confirms buying Avocet gold assets in Indonesia, Malaysia

PT Merukh Enterprises, through its subsidiary PT Lebong Tandai, has reached deal with UK miner Avocet Mining Plc to acquire the latter?s gold mining assets in Indonesia and Malaysia for US$250 million.

President Commissioner of Lebong Tandai Rudy Merukh said the company now controlled 100 percent of PT Avocet Bolaang Mongondow (ABM), which operates a gold mine in North Lanut, North Sulawesi. North Lanut mine produced 41,000 ounces of gold in 2009. Prior to acquisition Lebong Tandai already has a 20 percent stake in ABM.

The deal signed for 100 percent of the assets on June 8, Rudy said.

Merukh also said that the company would also wholly own Avocet?s Penjom mine in peninsular Malaysia.

Merukh Enterprises is controlled by Indonesian mining magnate Jusuf Merukh

Last month, Merukh Enterprises announced the acquisition of Avocet?s gold mining assets in Indonesia and Malaysia for US$250 million, but the report was immediately denied by Avocet, who dimissed it as a mere "press speculation".

Avocet then said: ?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. (*)