 tumbled on Monday, after the company announced the expiration of its standstill agreement with its subsidiary.){kind=link}
Shares in Avocet Mining (LON:AVM) tumbled on Monday, after the company announced the expiration of its standstill agreement with its subsidiary.
According to the company statement, its subsidiary Société des Mines de Bélahouro SA’s agreement with certain of SMB’s financial and trade creditors (the ‘Major Creditors’) has expired.
As a consequence of the failure to come up with an extension agreement, Avocet will consider “all available options, including the potential filing of an insolvency petition by SMB”.
“Given the current status of discussions, it is unclear whether agreement on a restructuring of the balance sheet can be reached before SMB has exhausted all available sources of financing,” the company commented.
Its Inata mine in Burkina Faso has been consistently hit by disruptions, including a two-month closure towards the end of 2016.
This marks a difficult year for the mining company, which back in May saw its shares suspended after failing to deliver its accounts on time.
Back in April, the company announced the departure of its chief executive, David Cather, who has been replaced by Boudewijn Wentink, who previously was a director with New World Resources, a Czech Republic based coal-mining company.
Cather had been Chief Executive of the mining company since 2012, and has now taken up the role as Technical Director.
Avocet is a gold mining and exploration company, which is primarily focused in West African Gold. Its main operations are in Burkina Faso and Guinea. The company is listed on both the London Stock Exchange as of 1996, and the Oslo Børs.
Shares in the company ticked downwards as much as 20 percent as the market reacted to the latest developments. As of currently, shares in Avocet are down 23.80 percent as of 15.18PM (GMT).