Advertisement

Vatukoula shares rocket on new deal

Shares in Vatukoula Gold Mines rocketed on Monday after the company revealed it has entered into a subscription agreement with SCD Energy, a subsidiary of DRK Energy.

Shares in Vatukoula Gold Mines rocketed on Monday after the company revealed it has entered into a subscription agreement with SCD Energy, a subsidiary of DRK Energy.

SCD will subscribe for 30m new ordinary shares (equal to 19.2% of the enlarged issued share capital) at 15p per share, raising £4.5m.

Advertisement - Article continues below

The subscription will be completed over a monthy in two equal tranches, the first by May 28th and the second by June 17th.

Vatukoula and DRK have also to work in conjunction to source the required debt financing to fund the Company's planned expansion programme.

As such, if VGM enters into a debt financing package facilitated or introduced by DRK of no less than $40m within 120 days of the subscription agreement, DRK will have the option to acquire an additional 24m new ordinary shares in the company at an exercise price of 15p per share.

However, if the company secures the debt financing within the 120 days from institutions that it is currently in discussions with, the option exercise price will be the lower of 25p or 90% of the five day trading volume weighted average price following the announcement of the debt financing.

The share price rocketed 55.68% to 9.73p by 09:43 Monday.

NR

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
What gold, bonds and tech stocks have in common
Stockmarkets

What gold, bonds and tech stocks have in common

"Risk off" or "safe haven" assets such as gold and government bonds have been doing well lately. But so have riskier tech stocks. That seems to defy c…
10 Jul 2020
House price crash: UK property prices are falling – so where next?
Property

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020