(Alliance News) - Avocet Mining PLC on Tuesday said it has withdrawn some resolutions from the general meeting scheduled to be held on Thursday.
The gold mining and exploration company has withdrawn a special resolution to place the company into voluntary liquidation and to appoint the joint liquidators of the firm.
Avocet said the decision came in following the feedback from shareholders. However, this does not affect the convening of the general meeting which will still take place.
The miner said US hedge fund Elliott Associates LP has released Avocet from its USD32.2 million overdue loans against the payment of almost all of the USD21 million in proceeds received from the disposal of Tri-K assets.
Back in June, Avocet was looking to restructure its overdue loans to Manchester Securities Corp, a unit of Elliott. In light of this, Avocet has already sold its assets in Burkina Faso as well as its subsidiary Wega Mining AS.
As a result, the only asset left are the remaining proceeds from the disposal of the Tri-K gold mine in Guinea. Avocet has used part of this sum to pay transaction costs and to settle some outstanding debts.
The company estimates residual cash resources provide headroom only for a few weeks of running costs.
Looking ahead, Avocet said it is open to, in the short term, exploring viable investment opportunities.
"The shareholders are therefore advised that, should there be no viable opportunities, or if any opportunity is not significantly progressed, before the company has exhausted its own cash resources, the board will, in order to avoid an insolvent liquidation, immediately seek to obtain approval of the resolutions required for a members' voluntary liquidation to be implemented," Avocet said in its statement Tuesday.
Avocet shares were untraded on Tuesday in London, last closing at 11.62 pence each.