Avocet raises US$16m from sale of two Indonesian mining assets

London-based miner Avocet Mining Plc said that it has concluded the sale of two more South East Asian assets, namely its 75 per cent interest in PT Gorontalo Sejahtera Mining, including the Pani prospect, and its 60 per cent interest in PT Arafura Surya Alam.

The two companies are located in North Sulawesi.

The sale of these assets, for US$16 million on a debt-free cash-free basis, was to an affiliate of J & Partners L.P. and will result in an exceptional pre-tax gain of approximately $8.1 million being included in the company's 2011 third quarter results.

The sale forms part of the overall disposal of Avocet's South East Asian assets for a total consideration of $200 million, as originally announced on 24 December 2010. The company has now received $197 million in cash of the $200 million total consideration.

Sale completion in respect of Avocet's remaining two exploration assets in South East Asia for consideration of $3 million is still subject to various government approvals. (romel)