TIDMVGM

RNS Number : 1771S

Vatukoula Gold Mines PLC

05 November 2013

5 November 2013

Vatukoula Gold Mines plc

("Vatukoula" or "the Company")

Update on US$ 40 million Investment Agreement

Further to the announcement on 21 October 2013, Vatukoula, the AIM listed gold producer focused on Fiji, is pleased to announce the completion of the second US$ 10 million tranche of the equity funding under the US$ 40 million investment agreement with Zhongrun International Mining Co. Ltd ("Zhongrun") ("Investment Agreement").

Of the US$ 40 million Investment Agreement, US$20 million of equity has now been completed with the US$ 20 million of secured loan notes expected to be completed by the end of January 2014.

David Paxton, CEO of Vatukoula Gold Mines, commented:

"With the completion of the US$ 20 million financing, we have begun to embark on our capital expansion plans to increase grade and tonnage from underground mining operations. Based on current mine plans and costs, I believe, that we will be able to achieve our long term production target of 100,000 ounces per annum at a cost of below US$900 per ounce"

Application will be made to AIM for the admission of 98,897,000 new ordinary shares of 5p each. The new ordinary shares rank pari passu with the Company's existing issued ordinary shares, and dealings are expected to commence on or around 8 November 2013.

Following admission of the 98,897,000 new ordinary shares, the Company's enlarged issued share capital will comprise 345,255,339 ordinary shares. The Company hold no shares in treasury. Therefore the total number of ordinary shares with voting rights is 345,255,339, which figure may be used by shareholders in the Company as the denominator for calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Zhongrun currently holds 127,800,000 ordinary shares in the Company and following the completion of the second tranche of equity funding will hold 226,697,000 ordinary shares, representing approximately 66% of the enlarged share capital of the Company.

As referred to in the announcement on 21 October 2013, on completion Zhongrun will hold approximately 66% of the voting rights of the Company, without a waiver of the obligations under Rule 9 of the Code, Zhongrun would be required to make a Rule 9 Offer to acquire all of the Ordinary Shares not already owned by it. The Panel has approved a waiver of the obligations of Zhongrun to make a Rule 9 Offer without the requirement for the waiver to be approved by independent shareholders at a general meeting following receipt of written confirmations agreeing to such waiver given by the shareholders holding, in aggregate, in excess of 50 per cent of the shares of the Company capable of being voted at a general meeting of independent shareholders.

 
 Enquiries: 
 Vatukoula Gold Mines plc 
 David Paxton            + 44 (0)20 7440 0643 
 Kiran Morzaria 
 W.H. Ireland Limited                           Pelham Bell Pottinger 
 James Joyce                                    Charles Vivian          + 44 (0)20 7861 
  James Bavister         + 44 (0)20 7220 1666    Daniel Thöle       3232

This information is provided by RNS

The company news service from the London Stock Exchange

END

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