He spawned in the farmost tent, there are two mushroom in it, he spawned 3 times for us during a fairly long playsession, and he was always the leftmost one of the two. we sat camp just in the corner outside the nearby tunnell, just one wandering baelorat comes up there, timed him. The bugs wont aggro you unless you use AE spells.
Tip:
We used Radiant Cure AA to deal with his AE dot, rotated between the cleric, druid and shaman in the group, in addition to regular healing. He is an easier kill than most other nameds in this zone.
Loot:
In 3 kills he dropped 1 x Spong's Kerchief, 2 x SHD only weapon not listed above, and 2 x feet clay.
Good luck!
Mrtiny
CT