Vatukoula Gold Mines PLC Second tranche of Zhongun funding approved (6385D)

TIDMVGM

RNS Number : 6385D

Vatukoula Gold Mines PLC

31 March 2014

Vatukoula Gold Mines plc.

("Vatukoula" or "the Company")

Second tranche of Zhongrun Funding Approved

Vatukoula, 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 previously announced on 12 August 2013.

As announced on 5 November 2013, the US$ 20 million equity component was completed. On 3 March 2014 the Company announced that Zhongrun had informed the Company the second tranche of US$20 million of secured loan notes ("Loan Notes") was awaiting the approval the State Administration of Foreign Exchange (SAFE) of the People's Republic of China.

Zhongrun have informed the Company that SAFE approval has been granted. The Company and Zhongrun have agreed to vary the terms of the Loan Notes, to match the cashflow requirements of the operations at the Vatukoula Gold Mine in Fiji. In this regard the schedule of payments from Zhongrun will occur in three tranches, with the first received by no later than the end of April and the last in June. Each tranche will be no less than US$ 4 million and will total US$20 million.

Management has assessed the effect of the historical delays in financing and the change in the delivery dates of the Loan Notes and has identified that as a result the Company will need to revise its production guidance for the financial year ending August 2014 to approximately 40,000 ounces.

 
 
   Enquiries: 
 
   Vatukoula Gold Mines plc                    Bell Pottinger 
                           + 44 (0)20 7440                       + 44 (0)20 7861 
 David Paxton               0643             Daniel Thöle    3232 
 Ian He 
 
   W.H. Ireland Limited 
                           + 44 (0)20 7220 
 James Joyce                1666 
 James Bavister

This information is provided by RNS

The company news service from the London Stock Exchange

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