Avocet Mining PLC (LON:AVM) has transferred 30% of its Tri-K gold project to the Moroccan mining group Managem SA.
Avocet is a West-African focussed gold mining and exploration company with its primary projects in Burkina Faso and Guinea. Moreover, Managem is a Moroccan company active in the mining industry.
Initially announced in October 2016, the agreement will see Managem hold a 70% interest in the Guinea-based project. This is based on various conditions. Firstly, Managem must pay $4 million for 40% of the project and related share holder loans. Next, Managem must complete a $10 million work programme. Finally, Managem must produce a bankable feasibility study for an operation with a reserve of at least 1 million ounces.
In May 2017, Managem received the 40% after paying $4 million. In August 2018 Managem sent Avocet an overview of the work programme and the feasibility study, meeting the final two conditions.
Today, Avocet has transferred the remaining 30% of the Tri-K project and the related shareholder loans. Despite this, an ongoing discussion remains between the two companies concerning the significant overspend of the costs incurred by the work programme.