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Avocet defers completion of the Resolute sale

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Global Mining Review,

Avocet has deferred the completion of the sale of Resolute (West Africa) Ltd to the Balaji Group, to 25 January 2018.

On 18 December 2017, the company announced that it has entered into an agreement to sell all of its assets in Burkina Faso, including the Inata gold mine, together with certain receivables of the company’s group to the Balaji Group for a total consideration of US$5 million. Completion of the transaction was expected to occur on 11 January 2018.

The Balaji Group had entered into discussions with International Royalty Corporation (IRC), a creditor of Resolute, under a threat of insolvency of Resolute. In light of this, Balaji has requested the deferral of completion of the sale to 25 January 2018 to be able to finalise a settlement of IRC’s claim.

This request has been granted to defer and the deposit of US$500 000 referred to in the announcement of 18 December 2017 has now been paid to the company. This amount will be retained by the company whether or not completion of the sale occurs. If completion of the sale does occur, it will form part of the cash consideration payable by the Balaji Group in respect of the novation by the company to the Balaji Group of certain receivables owed to it by SMB and Goldbelt.

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African mining news Gold mining news