Avocet Mining PLC ("Avocet" or "the Company") announces that 
bailiffs acting on behalf of exworkers
of Société des Mines de Bélahouro SA ("SMB", owner of the 
Inata gold mine), who
had been laid off following the illegal strike in December 
2014, took seizure of a gold
shipment containing approximately 1,400 ounces on Friday 7 
October 2016.
The legal basis for the seizure was, according to 
representatives of the ex-workers, a number
of unpaid benefits which remain outstanding. Although a 
court upheld their claim that
elements of pay were due, the amount has yet to be 
determined by a court, and SMB
management believe that any amount would be considerably 
less than the 2bn CFA
(US$3.4m) claimed by representatives of these workers.
SMB has maintained that the seizure itself was illegal, and 
although management had hoped
to have the seizure removed earlier, a court hearing is now 
due to take place today at which
the lifting of the seizure will be requested. No gold 
shipments will be made until SMB is sure
that they will not be again intercepted by bailiffs. 
Following this hearing, a decision is
expected within 1-2 weeks.
SMB management have advised workers and the government that 
if this matter cannot be
resolved promptly, and cash cannot be realised from gold 
sales in order to pay for running
costs of the mine, management will need to consider 
temporary cessation of operations.
If such a cessation is necessary, production will be 
impacted and no payments will be possible
to suppliers or workers until the matter is resolved. If the 
cessation continues for a prolonged
period, it may mean that the mine cannot be re-started 
without significant investment, if at
all, and may have a material adverse effect on SMB's 
financial position.
If SMB is unable to provide funds for head office and 
corporate costs before receipt of
proceeds in connection with the sale of Tri-K to Managem SA 
(as announced on 10 October
2016), which is expected to take place before the end of the 
year, then the Company will
need to find alternative sources of funds, which are 
expected to be approximately US$1-200k
per month.
Further updates will be made as appropriate in this matter.