Tom McIvor | Alliance News
Vatukoula Gold Mines PLC Monday said it has completed the first tranche of equity funding under its USD40 million investment agreement with Zhongrun International Mining Corporation Limited.
The AIM-listed gold producer, with operations in Fiji, said the initial investment of USD10 million will allow the company to focus efforts on optimising its operations and increasing production in the medium term.
Vatukoula said the investment by Zhongrun is part of a long term strategy to reposition Vatukoula and assist the mine in achieving its long term production targets of in excess of 100,000 ounces per year, which its management believes it can reach in approximately 18 months from the completion of the USD40 million funding.
The company said the next USD10 million of equity is anticipated to be completed at the end of October and the final USD20 million, completed in secured loan notes should be completed by the end of January 2014.
Vatukoula shares were up 3.3% to 8.25 pence Monday.