JOHANNESBURG (miningweekly.com) – Aim-listed Avocet has deferred the completion of the $5-million sale of its Resolute operations in Burkina Faso, to Ghana-based Balaji Group, to January 25.
The struggling miner set the sale in motion last year to stave off potential bankruptcy for its units in the West African country, with the transaction initially set for completion by January 11.
The Balaji Group entered into discussions with International Royalty Corporation (IRC), a creditor of Resolute, under a threat of insolvency of Resolute. Against this background, Balaji had requested the deferral of the sale’s completion to finalise a settlement of IRC's claim.
Avocet has already received a $500 000 deposit, which would be retained regardless of whether or not the sale is concluded.
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.
Avocet’s assets in Burkina Faso include the Inata gold mine, together with certain receivables of the company's group.