Private group to take over Primary Metals block

Avocet Mining (AVM-L), the London-listed gold producer, has reached an agreement to sell its 49% interest in Vancouver-based Primary Metals (PMI-V).

The buyer is a Delaware-based private company, Almonty, which will also subscribe for 338,888 shares at 18. A series of loans payable to Avocet are being transferred to Primary as part of the transaction, including a Eur 2.1-million loan Primary’s operating subsidiary, Beralt Tin and Wolfram, owes to Avocet.

Beralt operates the Panasqueira tungsten mine in central Portugal, which produced about 240 tonnes tungsten in concentrate from 113,000 tonnes of ore in the three months ended Sept. 30.

This is the second time Avocet has tried to sell its share in Primary Metals. An deal last June, made with Tiberon Minerals (TBR-T), fell through last September.