UK-based River Diamonds has signed an agreement which will give it sole ownership of the Vatukoula gold mine, in Fiji.

The company said in a statement on Friday that it had signed a conditional agreement – subject to shareholder approval - to buy the remaining 80% of Viso Gero International (VGI) that it does not already own, from Viso Gero Global.

VGI owns 94% of Westech Gold, which, in turn, owns the Vatukoula mine.

River Diamonds will pay £29,56-million in cash and shares for the 80% stake in VGI, which will then buy the remaining 6% of Westech.

“Following the acquisitions, River Diamonds will be a potentially significant gold producer. Progress to date at the mine has been excellent and operational targets are being met. We are now well positioned for future growth and have the financing to move forward rapidly,” said River Diamonds chairperson Colin Orr Ewing.

The company also said that it plans to raise £4,25-million by placing 70,83-million shares with institutional investors, at 6p a share.

Westech Gold bought the Vatukoula mine from Emperor Mines (then controlled by DRDGold) earlier this year, and poured the first goldin early November.

The mine had been placed on care-and-maintenance in December 2006, following a three-month review, which determined that continuing mining operations were no longer economically viable.

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