Avocet Mining denies rumours of potential takeover offer

Avocet Mining (LON:AVM) was forced once again to clarify press speculation emanating from Indonesia related to the possible disposal of its North Lanut and Penjom Gold Mines.

The mid-tier gold producer confirmed that it was still in discussions with potential suitors interested in acquiring its interests in the two gold mines in Indonesia, but denied speculation that PT Lebong Tandia, who currently owns a 20% stake in the Avocet’s North Lanut Mine and Bakan Project, was interested in acquiring Avocet Mining outright.

Over the past 12 months (to 31 March 2010), total cumulative production from North Lanut and Penjom Gold mines was 107,000 ounces.  Press speculation in Indonesia has suggested a price tag of US$250 million for Avocet’s two operations in Indonesia.

Avocet Mining further added that it was not in discussions with any group about a bid for the entire company.

Avocet’s other key project is the Inata gold mine in Burkina Faso, where it holds a 90% interest. Inata is currently ramping up production to 10,000 ounces per month, and hosts 900,000 ounces of reserves and 1.7 million ounces of resources.

http://www.proactiveinvestors.co.uk/companies/news/17499/avocet-mining-denies-rumours-of-potential-takeover-offer-17499.html