Avocet set for asset sale
Avocet Mining (AVM) has signed a binding agreement for the conditional sale of its South East Asian assets to J&Partners, a private Cayman Islands company, for $200 million (£130 million) cash.
The assets to be sold include the Penjom mine in Malaysia; the North Lanut mine and Bakan project in North Sulawesi, Indonesia; and a number of exploration properties in Indonesia.
J&Partners is a mining fund established by Jimmy Budiarto, a member of the Indonesian family that in November 2009 sold its interest in Indonesia's second-largest mining contractor, BUMA.
The principals in J&Partners are Budiarto and Chris Hui, former head of investment banking for Barclays Capital in China and Hong Kong.
The company said the transaction is the result of a strategic review of the business in South East Asia.
Its completion would leave Avocet as a West African gold producer with a clear strategy of growth in that region, holding no further assets in South East Asia.
Decisions about the use of proceeds will be taken following completion of the transaction, which is expected to occur in the second quarter of 2011.
"We believe J&Partners has the ability to realise the potential of these assets and will best serve the interests of the employees and communities vested in these assets said Avocet's chief executive, Brett Richards, in a statement.
"As well as completing this transaction in South East Asia, our strategic objectives in West Africa include plant enhancements at Inata to underpin increased life of mine production, and an aggressive exploration campaign in both Burkina Faso and Guinea."
