LONDON (Alliance News) - Avocet Mining PLC Tuesday said it has drawn down further funds under the Third Elliott Loan Facility agreed with Manchester Securities Corp, an affiliate of its largest shareholder Elliott Management Corp.
The Third Elliott Loan Facility for up to USD2.4 million, comprises three separate facilities, of which Avocet has now drawn down the first and second and part of the third. The initial facility of USD1.5 million was drawn down in April, and on Tuesday Avocet said it has also drawn down the second facility of USD1.8 million, as well as the first tranche of USD0.2 million under the third facility.
USD1.5 million of the second facility is to repay interest under the initial facility, and the remaining USD0.3 million is to finalise the Elliott Security, Avocet said.
Avocet intends to draw down the remaining two tranches of USD0.2 million each under the third facility over the coming months.
"With the funds already in hand, and assuming it is able to draw down the remaining USD0.4 million amount due under the third facility, the company expects to have sufficient funds to meet its corporate requirements through to the end of October 2015, allowing it to continue its business review, while exploring longer-term funding options. As part of the business review Avocet continues to consider options for maximising the value of its assets for the benefit of shareholders, including its Inata mine and the adjacent Souma deposit in Burkina Faso, and its Tri-K development project in Guinea," Avocet said in a statement.
Shares in Avocet were trading down 5.2% at 3.58 pence Tuesday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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