Avocet Mining PLC Prospectus December 2011

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c105718pu010 Proof 5: 7.12.11_13:34 B/L Revision: TABLE OF CONTENTS Page SUMMARY INFORMATION 3 RISK FACTORS 9 PRESENTATION OF INFORMATION 19 EXPECTED TIMETABLE OF PRINCIPAL EVENTS 22 DIRECTORS, SECRETARY, REGISTERED OFFICE AND 23 ADVISERS PART I INFORMATION ON THE GROUP 25 PART II DIRECTORS, SENIOR MANAGERS AND CORPORATE 49 GOVERNANCE PART III GOLD MARKET AND INDUSTRY OVERVIEW 55 PART IV INFORMATION ON BURKINA FASO, GUINEA AND MALI 59 PART V SELECTED FINANCIAL AND OPERATING INFORMATION 70 AND OPERATING AND FINANCIAL REVIEW PART VI CAPITALISATION AND INDEBTEDNESS STATEMENT 89 PART VII CONSOLIDATED HISTORICAL FINANCIAL INFORMATION 91 PART VIII UNAUDITED CONSOLIDATED INTERIM FINANCIAL 144 INFORMATION FOR THE SIX MONTHS ENDED 30 JUNE 2010 PART IX UNAUDITED CONSOLIDATED INTERIM FINANCIAL INFORMATION FOR THE THREE MONTHS AND THE NINE MONTHS ENDED 30 SEPTEMBER 2011 162 PART X TAXATION 187 PART XI ADDITIONAL INFORMATION 192 PART XII MINERAL EXPERTS’ REPORT 217 PART XIII DEFINITIONS 365 PART XIV GLOSSARY OF TECHNICAL TERMS 370 SCHEDULE 1 LEGAL STRUCTURE OF THE GROUP 373 2
c105718pu010 Proof 5: 7.12.11_13:34 B/L Revision: SUMMARY This summary should be read as an introduction only to this document and any decision to invest in the Company should be based on consideration of this document as a whole by the investor and not solely on this summarised information. Investors should note that if a claim relating to the information contained in this document is brought by an investor before a court in a member state of the European Economic Area, the investor bringing the claim might, under the national legislation of that member state, have to bear the costs of translating the document before legal proceedings are initiated. Civil liability attaches to those persons who are responsible for this summary, including any translation of this summary, but only if the summary is misleading, inaccurate or inconsistent when read together with other parts of this document. 1. Overview (a) Group Information Avocet Mining is a West African gold mining and exploration company. The Company currently operates one gold mine, Inata, in Burkina Faso, and has a pipeline of exploration projects in Burkina Faso, Guinea and Mali, supported by strong management teams. The Company expects to produce approximately 160,000 ounces of gold in 2011. Avocet Mining’s gold mining and exploration operations were historically located in South East Asia. In June 2009, Avocet Mining acquired Wega Mining and, through it, Inata in Burkina Faso and exploration assets in Burkina Faso, Guinea and Mali. Following the acquisition of Wega Mining, Avocet Mining made the decision to divest its South East Asian Assets in order to focus on the highly prospective gold region of West Africa. At the date of this Prospectus, Avocet Mining holds an interest in 21 exploration licences in West Africa. Listed on the OSE and posted for trading on AIM, at the latest practicable date prior to the date of this Prospectus, Avocet Mining had a market capitalisation of £425 million. Avocet Mining’s recent exploration focus has been on advancing its understanding of the geology in and around its existing assets in Burkina Faso, Guinea and Mali. (b) (i) Operations Exploitation project Inata, Burkina Faso Inata is a gold mine located within a highly prospective 1,660 square kilometre land package in the Bélahouro district of northern Burkina Faso in the western part of the Birimian Belt. Avocet Mining operates Inata through its 90 per cent owned subsidiary, SMB. Mining is currently focused on the Inata North, Central and Far South pits, and is undertaken by conventional open pit methods. Mill throughput of 645,000 tonnes of ore in the first quarter of 2011 represented an average of 318 tonnes of ore per hour. Mill throughput in each of the second and third quarters of 2011 totalled approximately 585,000 tonnes. In the first quarter of 2011, Inata produced 47,963 ounces of gold followed by 39,423 ounces of gold in the second quarter of 2011. The Company produced 33,256 ounces of gold in the third quarter of 2011. In July 2011, Avocet Mining announced in a strategic update that it had initiated a scoping study regarding increasing production capacity at Inata to a target of 245,000 ounces per annum during 2013. In October 2011, as part of its third quarter results, the Company provided an update on the scoping study, announcing that as well as its stated target of an additional 80,000 ounces per year mentioned above, the Inata expansion scoping study would also review potential scenarios for larger expansions in gold production, in order to assess whether an expansion up to 330,000 ounces per year might be economically viable. The results of the wider scoping study are expected in the first quarter of 2012. The Inata deposit presently comprises Mineral Resources of 3.36 million ounces and an Ore Reserve of 1.47 million ounces according to CSA Global and Roscoe Postle and as reported in Part XII ‘‘Mineral Experts’ Report’’. Further details of Inata’s Mineral Resources and Ore Reserves are set out in Tables 1 and 2 of this Summary. The Company is targeting a further increase of an Ore Reserve to 1.8 million ounces during the first quarter of 2012. 3
Page 1 and 2: AVOCET MINING PLC * PROSPECTUS * DE
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Avocet Mining PLC West African Proj
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Avocet Mining PLC Prospectus December 2011

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