News blog
River Diamonds
- BY: Andrew Hore |
- POSTED: 17/07/2007 |
River Diamonds is acquiring 12.5% of a company that owns 94% of the Emperor gold mine in Fiji.
River Diamonds, which recently raised £3.1m at 1.3p a share, is investing £2.5m for a 12.5% stake in Viso Gero International. VGI is converting loans to Westech Gold, which owns the assets and mining rights of the Emperor gold mine, into a 94% stake. The mine has a gold reserve of 858,000 ounces with scope to increase it to nearer 5m ounces including 250,000 ounces of gold in mine tailings. River Diamonds has been looking for assets close to production and non-executive director David Lenigas has experience of the Emperor gold mine. The mine was closed at the end of last year and it should be up and running again before the end of this year. Cost savings and a change in mining technique are planned. The aim is to produce 140,000 ounces of gold a year. River Diamonds will need to raise more cash to develop this and other assets. The shares have risen to 1.78p since the previous placing.
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