Avocet to sell 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 privately owned Almonty of Delaware, which will also subscribe for 338,888 shares priced at 18 apiece. A series of loans payable to Avocet is being transferred to Primary as part of the transaction, including one for 2.1 million euros, which Primary’s operating subsidiary, Beralt Tin & Wolfram, owes to Avocet.

Beralt operates the Panasqueira tungsten mine in central Portugal, which produced 240 tonnes tungsten in concentrate from 113,000 tonnes of ore in the three months ended Sept. 30, 2004.

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