Avocet Mining has completed the sale of the majority of its South East Asian assets, as part of the US$200 million sale agreement announced on December 24, 2010.
The company has completed the sale of its 100% interest in the Penjom Gold Mine in Malaysia and its 80% interest in PT Avocet Bolaang Mongondow (PT ABM), which owns the North Lanut mine and Bakan project in North Sulawesi, Indonesia for proceeds of US$170 million.
Completion of the sale of Avocet’s other South East Asian assets is expected during the third quarter, following receipt of necessary government approvals. These assets are a 51% interest in the Seruyung exploration property; 60% interest in the Doup exploration property; 75% interest in PT Gorontalo Sejahtera Mining, including the Pani prospect; 100% interest in PT Avocet Mining Services; and a 100% interest in Avocet Mining (Malaysia) OHQ Sdn Bhd.
Following an assignment agreement dated June 20, 2011, the counterparty for the completed sale and for the sale of the remaining assets, is PT Bara Kutai Energi, an affiliate of J&Partners, LP, which was the original buyer announced in December 2010.
In addition to the US$170 million of proceeds, Avocet has received a further US$9.7 million from the buyer with respect to the estimated cash held at completion by Penjom and PT ABM.
Avocet’s chief executive officer Brett Richards says, “I am very pleased that the process we embarked on in mid-2010 to review the strategic options for our South East Asian assets has delivered strong value through the substantial completion of the sale of these assets to PT Bara Kutai Energi and I look forward to the sales completion of the remainder of the assets in the near future.
“This transaction emphasizes the company’s strategy of focusing on building a larger business from its West African assets. I commend all of the employees involved in the review process and their roles in realizing this value, as it is a testament to their commitment and dedication in transitioning Avocet Mining to become a leading West African gold mining and exploration company.”