Embattled Avocet Mining has temporarily withdrawn a resolution that was to be put to shareholders at an upcoming general meeting for the proposed voluntary liquidation of the company.
Avocet on Tuesday said it would discuss possible outcomes for the company, including being broken up in an orderly manner and eventually wound up, at its annual general meeting on July 18.
Given the amount of debt owed by Avocet, there will be minimal or no returns to shareholders.
The company advised that its secured creditor Manchester Securities Corporation had released the company from its $32-million in loans overdue since 2013, against the payment of almost all of the $21-million in proceeds from Avocet selling its Tri-K assets.
Avocet had also transferred to the creditor $2.5-million in deferred consideration for the sale of its assets in Burkina Faso, payable by the Balaji group of companies over five years from June 2020.
The only asset left of the company is the remaining proceeds of the disposal of the Tri-K assets, which Avocet used to pay transaction costs and to settle some outstanding debts.
The company said the company’s residual cash resources provided headroom only for a few weeks of running costs.
Avocet confirmed that its board members were open to, in the short term, exploring viable investment opportunities for the company, but stressed that such opportunities would have to be accompanied by new sources of funding.
Should there be no viable opportunity presented, or should an opportunity not significantly progress, the company would seek to obtain approval of the resolutions required for a members’ voluntary liquidation to be implemented, to avoid an insolvent liquidation.