Vatukoula Gold Mines has entered into a new subscription agreement with Zhongrun International Mining, under which Zhongrun has subscribed for 20m new ordinary shares in Vatukoula.
With the shares priced a 33p each, the placing will raise £6.6m. The new shares will represent approximately 17.01% of the enlarged issued share capital of the company and once the subscription is completed Zhongrun will hold 29m shares, representing around 24% of the enlarged issued share capital.
The subscription agreement with Zhongrun replaces the subscription agreement with Shengen Xintai International Mine Industry Group announced earlier in the year.
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"It has become apparent to the board of Vatukoula that Xintai cannot complete the agreed subscription in the time frames previously announced and company will be pursuing its legal rights against Xintai for its failure to meet the terms of its signed subscription agreement," Vatukoula said.
Dave Paxton, Chief Executive Officer of VGM said: "The board is disappointed that Xintai failed to complete its subscription agreement but is very pleased to welcome the investment of Zhongrun in VGM and looks forward to continuing its valuable strategic relationship with Zhongrun to assist in the development of the Vatukoula Gold Mine."
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