Vatukoula Gold Mines PLC Update on Investment Agreement (3779P)

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RNS Number : 3779P

Vatukoula Gold Mines PLC

01 October 2013

1 October 2013

Vatukoula Gold Mines plc

("Vatukoula" or "the Company")

Update on Investment Agreement

Vatukoula Gold Mines plc, the AIM listed gold producer focused on Fiji, provides an update on the investment agreement with Zhongrun International Mining Co. Ltd ("Zhongrun") to provide US$ 40 million of funding to implement the capital investment plan at the Vatukoula Gold Mine.

The Company has been informed by Zhongrun that it has received preliminary approval of the transfer of funds by the State Administration of Foreign Exchange ("SAFE") of the People's Republic of China

As of 30 September 2013, as a consequence of changes to the City Code on Takeovers and Mergers (the "Code"), the Company is now subject to the Code. The Company was not previously subject to the Code as it had previously been able to rely on an exemption that, as its place of central management and control was outside of the UK, the Code did not apply. However following the amendment to the Code, for a UK incorporated company with its shares admitted to Aim, this exemption no longer applies in regard of central management and control.

As the investment agreement had not completed by the 30 September 2013 and on completion Zhongrun will hold approximately 66% of the voting rights of the Company, completion will be subject to a waiver of the obligation for Zhongrun, under Rule 9 of the Code, to make an offer for all the ordinary shares of the Company not owned by Zhongrun.

Pending final approval and the requirement for the Company to seek a waiver under Rule 9 of the code, the Company is in discussions with Zhongrun to finalise the timing of the funding which is now expected by the end of October.

A further communication will be made in due course.

-Ends-

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

This information is provided by RNS

The company news service from the London Stock Exchange

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