Update on Salish transaction

RNS Number:4281I
Avocet Mining PLC
07 March 2003

AVOCET MINING PLC ("AVOCET")


UPDATE ON SALE OF TUNGSTEN ASSETS TO SALISH VENTURES INC.


In September 2002 Avocet Mining PLC (Avocet) and Salish Ventures Inc. (Salish)
announced that they had signed a Memorandum of Understanding whereby Salish
would take control of all Avocet's remaining tungsten assets in exchange for
Avocet receiving just under 50% of the issued share capital of Salish. These
interests primarily include the Panasqueira tungsten mine in Portugal, owned by
Avocet's wholly owned Portuguese subsidiary, Beralt Tin & Wolfram, and a 10.6%
interest in the Lermontov mine, located in the Russian Far East.


The transaction contemplated Salish, a Capital Pool Company (CPC) listed on the
Canadian TSX Venture Exchange (the Exchange), taking control of Avocet's
tungsten assets.  The structure of the transaction was such that it allowed
Avocet to withdraw from the day to day operation of Beralt in order to
concentrate on its gold business while at the same time retaining an opportunity
to benefit from any upside should market conditions for tungsten improve. Trade
press has recently reported upward movement in the tungsten price due to a
tightening of supply from China, which accounts for over 80% of the world's
primary supply of tungsten.



Completion of the transaction is subject to approval by the Exchange and the
rules of the Exchange required an Information Circular or Filing Statement to be
filed and the transaction (designated a Qualifying Transaction under the
Exchange regulations) to be approved by shareholders.  The Exchange has required
that a sponsor review the transaction.  Salish engaged Union Securities Limited
as the sponsor and Avocet and Salish have been working to answer all the
sponsor's requirements and to complete an Information Circular or Filing
Statement, as required by the Exchange.  Owing to time constraints Salish filed
a shortened Information Circular on 26th February 2003 calling for an
Extraordinary General Meeting (EGM) on 24th March 2003.  The EGM will ask
shareholders of Salish to grant authority to the management of Salish to effect
an arm's length Qualifying Transaction at a future date, approve a stock option
plan and approve of a change to the company's name to Primary Metals Inc.  A
full copy of the Information Circular is available on www.sedar.com.



As a result of the ongoing review of the transaction by the various parties, it
was determined that in would be in the best interests of Avocet and Salish that
the transaction be restructured.   It has now been agreed that Avocet or its
nominees will purchase 1,000,001 shares from three individuals for Can$100,000
concurrent with the completion of the Salish transaction.  This will require
modification to a Filing Statement that has been drafted and submitted to the
sponsor and the Exchange.  It is envisaged that completion, which is subject to
Exchange approval, will occur before the end of March 2003.



Under the revised terms Avocet will own approximately 75% of the issued share
capital of Primary Metals on completion.  It is still Avocet's ultimate
intention to reduce its holding to an investment interest below 50%.  In the
interim Avocet will support a management team that will manage the assets of
Primary Metals.



Avocet is a mining company listed on the Alternative Investment Market (AIM) of
the London Stock Exchange.  The company's principal activities are gold mining
and exploration in Malaysia (as owner of the Penjom mine, the country's largest
gold producer), Tajikistan (as 44% owner and operator of the Zeravshan Gold
Company, Tajikistan's largest gold mine), and Indonesia (where it has an
advanced stage gold exploration property in North Sulawesi, currently at the
feasibility stage).



__________________________________________________________________________________________________

For further information please contact:

Avocet Mining PLC
           4C Communications Ltd

John Catchpole (Chief Executive)
       Carina Corbett

Jonathan Henry (Finance Director)
       020 8949 7171

020 7907 9000
               020 7907 4761

www.avocet.co.uk








                      This information is provided by RNS
            The company news service from the London Stock Exchange
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