INTERVIEW: Avocet Says Merukh Reports Spurred Bid Frenzy

28th Jul 2010 09:16

By Jason Douglas Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Gold miner Avocet Mining PLC (AVM.LN) Wednesday said incorrect reports it agreed a sale of its mines in south Asia to an Indonesian mining magnate sparked a frenzy of interest from potential purchasers. "I think we can do a deal," Chief Executive Brett Richards told Dow Jones Newswires, although he added there's no certainty a deal or a price will be agreed. Indonesian media reported in May that Avocet sold its 80% interest in the North Lanut mine in Indonesia and its 100%-owned Penjom mine in Malaysia to Indonesian politician-turned-mining-magnate Yusuf Merukh's PT Merukh Enterprises for $250 million. Avocet said talks were only ever preliminary and no deal was agreed. Richards said Merukh probably did Avocet a favor. The reports sparked a frenzy of competitive bids for the mines, he said. He added there are still obstacles to a deal--Avocet's company structure in the region is complex--and it is still considering other options for the two mines. These could include an initial public offering of a company holding its south east Asian assets or a strategic partnership, said Richards. Proceeds from any deal eventually made would be invested in Avocet's operations in West Africa and a portion could be used to acquire attractive assets there if appropriate, said Richards. -By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; [email protected] (END) Dow Jones Newswires July 28, 2010 04:16 ET (08:16 GMT)