AMN - GUINEA: Part of Tri-K project divested to Managem

Avocet Mining confirms that a Mining Convention was signed in Conakry in respect of the Tri-K project in Guinea by His Excellency Abdoulaye Magassouba, Minister of Mines and Geology, by His Excellency Mohamed Lamine Doumbouya, Minister of Budgets, by Imad Toumi on behalf of Managem SA, and by Jim Wynn on behalf of Avocet Mining.

The convention, which remains subject to ratification by the Guinean National Assembly, represents governmental approval of the Tri-K transaction between Avocet and Managem.

The transaction to divest part of the Tri-K project to Managem also remains subject to approval by Avocet’s shareholders at a general meeting, after which the Mining Convention will be submitted to the Guinean National Assembly for ratification.

Tri-K is a gold project located 90km northeast of Kankan (the second largest city in Guinea) within an exploration area of 490 sqkm The feasibility study completed in 2013, on the basis of a total mineral resource of 3 Moz and a heap leach operation, demonstrates an existing reserve of 480 000 oz of gold. This partnership aims to create a joint venture company to develop, build and operate the Tri-K gold project.

Through this agreement, Managem will be the project operator and its ownership interest will increase up to 70% in two stages. Avocet Mining is an unhedged gold mining and exploration company listed on the London Stock Exchange and the Oslo Børs. Its principal activities are gold mining and exploration in West Africa.

In Burkina Faso the company owns 90% of the Inata gold mine. Inata poured its first gold in December 2009 and produced 74,755 oz of gold in 2015. Other assets in Burkina Faso include five exploration permits surrounding the Inata mine in the broader Bélahouro region. The most advanced of these projects is Souma, some 20 km from the Inata gold mine.

The company also holds an interest in the Tri-K project in Guinea.

Managem is an industrial mining group with more than 86 years of history, operating a long-lived and balanced portfolio of precious and base metal assets as well as cobalt and fluorspar.

www.managemgroup.com

News courtesy of International Mining