29 Apr 2009 16:47
Avocet Mining PLC
RESULT OF WEGA EGM
Avocet Mining PLC (AIM: AVM) ('Avocet' or the 'Company') notes the announcement made today by Wega Mining ASA ('Wega') confirming that the general meeting of Wega shareholders held today has approved the terms of the convertible loan agreement entered into between Avocet and Wega (the 'Convertible Loan Agreement') as announced on 14 April 2009.
Under the Convertible Loan Agreement Avocet will provide a further US$25 million of interim funding to Wega by the issue of a secured loan, convertible into Wega Shares at a price of NOK 0.55 per Wega Share. The advancement of funds by the Company pursuant to the Convertible Loan Agreement remains subject to satisfaction of all other conditions precedent therein, including inter alia:
The Company is working with all relevant parties to ensure satisfaction of these conditions in a timely manner.
A further announcement will be made in due course.
| For further information please contact: | ||||
| Avocet Mining PLC | Buchanan Communications | Ambrian Partners Limited | J.P. Morgan Cazenove | First Securities |
| Financial PR Consultants | Financial Adviser, NOMAD and Joint Broker | Lead Broker and Joint Financial Adviser | Norwegian Financial Adviser | |
| Jonathan Henry, CEO | Bobby Morse | Richard Brown | Michael Wentworth-Stanley | Geir Lie |
| Mike Norris, Finance Director | Ben Willey | Richard Greenfield | Sam Critchlow | Stein Hansen |
| Katharine Sutton | Andrew Craig | Eirik Lilledahl | ||
| +44 (0) 20 7907 9000 | +44 (0) 20 7466 5000 | +44 (0) 20 7634 4700 | +44 (0) 20 7588 2828 | +47 2323 8000 |
| www.avocet.co.uk | www.buchanan.uk.com | www.ambrian.com | www.jpmorgancazenove.com | www.first.no |
Notes to Editors
On 14 April 2009, Avocet and Wega jointly announced that they had entered into a legally binding transaction agreement pursuant to which Avocet intends to make a pre-conditional, recommended share for share public exchange offer for the entire issued share capital of Wega. In order to provide interim funding for the continued development of Wega's flagship Inata Gold Project in Burkina Faso, and in addition to entering into the Convertible Loan Agreement, Avocet subscribed for 61,409,091 Wega shares on 14 April for consideration of approximately US$5 million.
Avocet is a mining company listed on the AIM market of the London Stock Exchange (Ticker: AVM). The Company's principal activities are gold mining and exploration in Malaysia (as 100 per cent owner of the Penjom mine, the country's largest gold producer), and Indonesia (as 80 per cent owner of the North Lanut gold mine and Bakan project in North Sulawesi). The Company has a number of other advanced mining and exploration projects in South East Asia.
Wega is an Oslo based international mining company focused on exploring, developing and operating gold deposits. The company currently operates in Guinea, Burkina Faso, and Mali. Wega trades on Oslo Axess (Ticker: WEMI).
Wega's main asset is the Inata Gold Project in northern Burkina Faso, West Africa, of which Wega became the owner as a result of the acquisition of Goldbelt Resources in 2007. The Inata Gold Project is currently under construction, with first gold production expected in Q3 2009, and full steady state production in FY2011. Inata will produce greater than 120,000 ounces of gold over an initial 7 year mine life. Wega's other assets include 27 exploration licences in Burkina Faso, Guinea and Mali, the Koulekoun gold exploration project in Guinea, a 58.1 per cent interest in TSX Venture Exchange listed Merit Mining Corp and a 36.2 per cent interest in base metals company, Metalica Mining AS.
Ambrian Partners Limited (which is regulated in the UK by the Financial Services Authority) is acting exclusively for Avocet Mining as financial adviser, nominated adviser and broker and no one else (including the recipients of this announcement) in connection with the arrangements described in this announcement and will not be responsible to anyone other than the Company for providing the protections afforded to customers of Ambrian Partners Limited or for advising any other person in connection with the arrangements described in this announcement. Ambrian Partners Limited makes no representation, express or implied, with respect to the accuracy or completeness of any information contained in this announcement and accepts no responsibility for, nor does it authorise, the contents of, or the issue of this announcement, or any other statement made or purported to be made by the Company, or on its behalf, in connection with the Company or any or the other arrangements described in this announcement and accordingly disclaims all and any liability whatsoever whether arising out of tort, contract or otherwise which it might otherwise have in respect of this announcement or any other statement.
J.P. Morgan Cazenove Limited ("J.P. Morgan Cazenove") (which is regulated in the UK by the Financial Services Authority) is acting exclusively for Avocet Mining as financial adviser and broker and no one else (including the recipients of this announcement) in connection with the arrangements described in this announcement and will not be responsible to anyone other than the Company for providing the protections afforded to customers of J.P. Morgan Cazenove or for advising any other person in connection with the arrangements described in this announcement. J.P. Morgan Cazenove makes no representation, express or implied, with respect to the accuracy or completeness of any information contained in this announcement and accepts no responsibility for, nor does it authorise, the contents of, or the issue of this announcement, or any other statement made or purported to be made by the Company, or on its behalf, in connection with the Company or any or the other arrangements described in this announcement and accordingly disclaims all and any liability whatsoever whether arising out of tort, contract or otherwise which it might otherwise have in respect of this announcement or any other statement.