UK?s Avocet Mining raises fund to finance N. Sulawesi gold project

UK-based mining firm Avocet Mining PLC announced on Friday that it would raise ?10.2 million through placement of 23,900,000 new ordinary shares of 25p each.

The proceed would be used to develop its North Lanut gold project in North Sulawesi and for exploration of its other properties, said the company.

Avocet is pushing to get North Lanut to commence production as early as next year.

In June, the company announced the positive result of bankable feasibility study (BFS) on North lanut gold project. According to the BFS, the mine would produce about 50,000 ounces of gold per year for five years with pre-production capital costs estimated at US$11 million.

The North Lanut project is designed to be an open pit mine using dump leaching for the recovery of gold.

In 2002 Avocet completed the purchase from Newmont Mining Corporation of an 80 percent interest with respect to a 6th generation Contract of Work (CoW) in Indonesia. The CoW consisted of a 460 square mile exploration property in North Sulawesi. (alex)