Aim-listed River Diamonds would buy a further stake in Viso Gero, the company that owns Emperor's Vatukoula gold mine in Fiji, it said.

The company raised 3,75-million pounds in a share placement, of which 1,75-million pounds would be used to subscribe for a further 7,5% stake in Viso Gero, while two-million pounds would be used for working capital.

River Diamonds would now own a 20% stake in Viso Gero, which holds a 94% stake in Westech Gold, the owner of Emperor’s mining rights and associated assets.

Westech bought the Vatukoula mine earlier this year from South Africa’s DRDGold's Australasian subsidiary, Emperor Mines.

“We are pleased to have completed the placing, which will allow us to invest further in the Vatukoula gold mine,” River Diamonds chairperson Colin Orr-Ewing said.

He added that the funds would be used to progress the development of the mine, with ore extraction scheduled to occur in November. Production was expected early next year.

Late last week, River Diamonds announced that the Emperor mine had recommissioned the two main production shafts, and that the rehabilitation of the mine was progressing well.

DRD Gold placed the mine on care and maintenance in December.

”The Emperor gold mine, in Fiji, is truly one the great gold operations in the world, and its closure by DRD ten months ago, was a severe blow to its two thousand odd employees and the Fiji economy. The imminent re-commissioning of the mine by the consortium is something that has received tremendous support from the Fiji government,” River Diamonds director David Lenigas commented.

He said that the mine had the capacity to produce 100 000 oz/y “for many years to come”.

“…with the new streamlined work force of an expected 760 employees, will be far more cost efficient than the situation that has prevailed over the past decade.”

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