Lebong sues Avocet Mining

PT Lebong Tandai, a subsidiary of PT Merukh Enterprises has filed a lawsuit against LSE gold mining company Avocet Mining PLC over dispute on the proposed 80 percent shares of Avocet.

Lebong in its lawsuit registered at South Jakarta district court also named J&Partners Asia Ltd, PT J.Resources Nusantara and PT J. Resources Asia Pasifik Tbk on the list of defendants on the dispute.

?The current lawsuit is different from the previous one. The defendants have agreed with plaintiff (on the shares sales) but the fact now is the (Avocet) shares are sold to other parties,? Lebong?s lawyer Thomas Kopong Mukin said, as quoted by Bisnis indonesia.

Thomas said that his client was the original owner or holder, since 1997, of the contract of work held by PT Avocet Bolaang Mongondow (PT ABM).

Avocet in its first statement dated on 10 May 2010 said that there has never been any agreement for the sale of Avocet?s South East Asian assets to Lebong Tandai.

It said that PT Lebong Tandai holds a 20 percent interest in PT Avocet Bolaang Mongondow, which holds the Contract of Work for the North Lanut mine and the Bakan exploration project only, and had a right of first refusal over Avocet?s 80 percent interest in PT ABM.

Although this right was offered to PT Lebong Tandai it was not exercised and has therefore lapsed, in accordance with the terms of the PT ABM joint venture agreement, as was announced on 22 February 2011, said Avocet adding that Lebong Tandai has no right of first refusal over any of Avocet?s other assets.

Avocet holds 80 percent owner of the North Lanut gold mine and Bakan project in North Sulawesi.

In December 2010 Avocet announced that it had signed a binding agreement for the conditional sale of its South East Asian assets to J&Partners L.P, a private company, for US$200 million.(*)