AVM.L Regulatory News (AVM)

7 Jul 2009 07:00



WEGA MINING EGM

Avocet Mining PLC ("Avocet" or the "Company") announces that following the completion of the compulsory acquisition process announced on 30 June 2009 and the registration of Avocet as the sole shareholder of Wega Mining ASA ("Wega Mining") on 6 July 2009, an extraordinary general meeting of Wega Mining (the "General Meeting") was held to consider various matters including the election of new members to the Board of Wega Mining and the de-listing of Wega Mining's ordinary shares from Oslo Axess.

At the General Meeting it was resolved to apply for the de-listing of Wega Mining's ordinary shares from the Oslo Access exchange in accordance with Section 25 of the Norwegian Stock Exchange Act, effective as soon as possible. It is expected that the de-listing process will complete by 21 July 2009. 

At the General Meeting it was also resolved that Jonathan Henry, Avocet's Chief Executive Officer, Mike Norris, Avocet's Finance Director and Jim Wynn, Avocet's Company Secretary be appointed as directors of Wega Mining. All existing directors of Wega Mining have resigned with immediate effect. 

Notes to Editors

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 in Malaysia (as 100 per cent owner of the Penjom mine, the country's largest gold producer), in Indonesia (as 80 per cent owner of the North Lanut gold mine and Bakan project in North Sulawesi), and in Burkina Faso (as 90 cent owner of the Inata gold project currently under construction) together with exploration projects in six countries (Malaysia, Indonesia, the Philippines, Burkina Faso, Mali and Guinea.

Background to operations

Penjom is Malaysia's largest gold producer and was developed by Avocet after applying modern technology to grass roots exploration in an area of historic alluvial mining. The mine is located in Pahang State, approximately 120 km north of the country's capital, Kuala Lumpur. The mine was commissioned in December 1996 with reserves of 223,000 ounces. Successful resource development means Penjom has produced over one million ounces of gold to date and still has nearly one million ounces of resource. Over the last two years Penjom has expanded its mining and plant capacity with plant throughput increasing from 570,000 to over 700,000 tonnes per annum to compensate for decreasing mined grades. Avocet was able to overcome initial problems of carbonaceous ore at Penjom by developing unique processing systems including complex gravity circuits and resin-in-leach ("RIL") technology. These processes have potential applications at other carbonaceous orebodies.

North Lanut in North Sulawesi, Indonesia, was developed by Avocet from the exploration stage and has produced over 220,000 ounces since it was commissioned in 2004. Avocet purchased an 80 per cent interest in PT Avocet Bolaang Mongondow ("PT ABM"), an Indonesian company holding a 6th generation Contract of Work ("CoW"), from Newmont Mining Corporation in 2002. North Lanut is located within the CoW, which includes exploration and mining rights over approximately 50,000 hectares in an area highly prospective for gold. An Indonesian company, PT Lebong Tandai, owns the remaining 20 per cent. The Company has a number of other advanced development and exploration projects in Indonesia.

The Inata gold project in Burkina Faso, West Africa, is currently under construction, with first gold production expected in late 2009, and full steady state production in FY2011. Inata is expected to produce greater than 120,000 ounces of gold per annum over an initial 7 year mine life.