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Avocet to receive US$12m from 1st gold shipment from Inata, Burkina Faso

Avocet Mining (AIM: AVM) has completed the first shipment of gold from its Inata mine in Burkina Faso. The company exported 11,000 ounces of gold to Rand Refinery's facility in South Africa, following Inata’s first pour on 20 December 2009. Proceeds of approximately US$12m are expected to be received next week.

Avocet’s Burkina Faso based subsidiary signed a refining contract with Rand Refinery earlier this month. By July, the Inata mine is expected to reach a steady state production rate of over 10,000 ounces. "Since first gold was poured the plant has performed ahead of expectations, and gold production to date has been well above our ramp-up schedule", Avocet CEO Jonathan Henry commented.

Avocet acquired the Inata mine through the all share acquisition of Oslo listed Wega Mining earlier this year. Inata hosts a measured and indicated resource of 1.4 million ounces. Avocet Mining already operates two gold mines, in Malaysia and Indonesia.

The company’s wholly-owned Penjom unit is Malaysia's largest gold producer, Avocet developed the project from a grass roots exploration area into a commercially producing gold mine. The mine is located in Pahang State, approximately 120 km north of Kuala Lumpur. The mine was commissioned in December 1996 with reserves of 223,000 ounces.

Disclosure: The author holds no positions in the company