Vatukoula's investor not deterred by placing delay

Fijian miner Vatukoula Gold Mines has run into some regulatory delays with its share placing, but the good news is that strategic investor Shengen Xintai is still keen to pump money into the firm.

Fijian miner Vatukoula Gold Mines has run into some regulatory delays with its share placing, but the good news is that strategic investor Shengen Xintai is still keen to pump money into the firm.

Vatukoula rose 2p to 42p shortly after announcing that the funding and binding placing agreement with Chinese company Shengen Xintai International Mine Industry has been put back due to delays in obtaining the approval of state authorities in China.

Under the placing, to be completed in two tranches, Xintai will invest a total of £10.3m to acquire a total of 20m new ordinary shares, equivalent to 17% of the enlarged share capital of Vatukoula.

Vatukoula has now granted a non-exclusive extension to the placing until the end of November 2012 at Xintai's request. It was supposed to have completed by October 3rd 2012.

The Chief Executive Officer of Xintai, Dingli Wang, commented: "Xintai remains committed to the placing and we continue to believe that Vatukoula represents an excellent investment opportunity. We have spent considerable time at the operations in Fiji and remain confident that the right strategy and management team are in place and are capable of delivering on their stated goals."

Mining minnow Vatukoula will use the funds to fund development of its gold mine in Fiji.

CM

Recommended

Britain’s ten most-hated shares – w/e 9 August
Stocks and shares

Britain’s ten most-hated shares – w/e 9 August

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
10 Aug 2022
Aviva: One for income investors to tuck away
Share tips

Aviva: One for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. R…
10 Aug 2022
Director dealings w/e 5 August: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 5 August: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
9 Aug 2022
Britain’s most-bought shares w/e 5 August
Stocks and shares

Britain’s most-bought shares w/e 5 August

A look at Britain’s most-bought shares as of 5 August, providing an insight into how investors are thinking and where opportunities may lie.
9 Aug 2022

Most Popular

Are UK house prices finally heading for a crash?
House prices

Are UK house prices finally heading for a crash?

The latest house price figures show a fall of 0.1% in July. With interest rates rising, inflation hitting double figures and a recession on the cards,…
5 Aug 2022
Brace yourself for the return of rationing
Economy

Brace yourself for the return of rationing

Russia is turning off the cheap energy. That is already leading to belt-tightening, says Matthew Lynn. Who will suffer most, and which sectors will th…
5 Aug 2022
Fear of missing out – what should investors do now?
Investment strategy

Fear of missing out – what should investors do now?

Markets have rallied from their mid-June lows. But if you missed out, as most investors did, what should you do now? Max King explains.
8 Aug 2022