UPDATE 1-Avocet Mining to apply for secondary Oslo listing

* Says seen increased interest from Nordic investors

* Expects listing before year-end or shortly after

(Writes through, adds details, share price)

OSLO, Oct 15 (Reuters) - Gold producer Avocet Mining (AVM.L) said on Thursday it would apply for a secondary listing on the Oslo Stock Exchange (OSE) following increased interest from Nordic investors.

Avocet Mining bought Oslo-listed Wega Mining in June, and the company said that about 35 percent of the group's shares were held by former Wega shareholders, mainly Norwegian investors that have since increased their holdings in Avocet.

"Avocet has seen continued interest from Nordic investors following the Wega transaction, and our board believes that providing the opportunity to develop their investment locally through an OSE listing will help us grow our investor base in the best interests of all shareholders," Chief Executive Jonathan Henry said in the statement.

"We expect our application to be ready late in 2009, and a listing to occur before the end of the financial year or shortly thereafter," he said.

Avocet Mining, currently listed on AIM -- the London Stock Exchange's international market for smaller growing companies, said it expected to join the main index in Oslo, the OB Match index, qualifying as a "large cap miner" and one of the 50 largest companies in the index.

"Avocet will be the second largest mining company on the OSE with a target to become the preferred "gold exposure" stock," it said.