West-African focussed gold mining and exploration company Avocet Mining Plc has completed the sale of Resolute (West Africa) Ltd (Resolute) to the Balaji group of companies (the Balaji Group) for US$5 million.
On 18 December 2017, Avocet Mining Plc entered into an agreement to sell all of its assets in Burkina Faso, West Africa, including the Inata goldmine, along with certain receivables of the company’s group to the Balaji Group for a total consideration of US$5 million.
Completion of the sale was expected to occur on 11 January 2018. At the request of the Balaji Group, completion of the sale had been delayed three times, most recently until 8 February 2018, pending its discussions with a creditor of Resolute.
The transaction involves the assignment of certain intercompany receivables for cash consideration of US$2.5 million, to be paid at completion, and for a consideration of US$ 2.5 million to be satisfied by deferred payments over a period of seven years.
At completion, the Balaji Group gave cash proceeds of US$2 million to Avocet. The Balaji Group had also already paid US$500 000 to the company in the form of a non-refundable deposit.