Avocet rockets as Asian assets sales go through

27th Jun 2011 12:03

Gold miner Avocet Mining said it has completed the sale of the majority of its south-east Asian assets, including the sale of its 100% interest in Penjom gold mine in Malaysia, for about $170m.The sale is a part of the $200m sale agreement announced on 24 December 2010. Avocet Mining said it has used approximately $25.6m from the proceeds to repay its loan balance and accrued interest under its corporate revolving facility with Standard Chartered Bank, which was previously secured on the Penjom assets.In addition to the $170m of proceeds, the company has received a further $9.7m from the buyer with respect to the estimated cash held at completion by Penjom and PT Avocet Bolaang Mongondow (PT ABM). The company said the proceeds for Penjom, PT ABM and the remaining $30m are expected to be received during the third-quarter, upon completion of the sale of the remaining exploration assets.Shares of the AIM-listed company were up 5.9% at 193.20p in midday trading. AR