Vatukoula Gold Mine Delisting Reasons

Vatukoula Gold Mine Limited’s highly trained fire and rescue team. Photo: Vatukoula Gold Mines

Effective July 1, Vatukoula Gold Mine Limited’s shares are no longer traded on the stock market.
This followed the company delisting from AIM, the London Stock Exchange’s international market for smaller growing companies.
Company general manager, Kevin Zhu, said the directors judged it would be better for the company to operate in the private arena.
He said this would enable further capital to be raised more easily and thus enable the company to succeed in its longer term objective of becoming a profitable business.
“The directors of the parent company based in London, Vatukoula Gold Mines PLC, conducted a review of the benefits of share trading on AIM,” Mr Zhu told Fiji Sun.
“In consultation with the company’s advisers and its major shareholders, it was agreed it was in the best interests of the company and its shareholders as a whole if the admission of the shares to trading on AIM was cancelled.
“The Board had concluded that the commercial disadvantages and costs of maintaining a listing at this time in the Company’s development outweighed the potential benefits.”
Option now
Vatukoula Gold Mine PLC has, however, made arrangements with W.H. Ireland Limited to provide a Matched Bargain Service for existing shareholders.
This can either be for shareholders wanting to dispose of their existing shares, increase their current holding of invest in the company. The service basically will allow investors to buy and sell the company’s shares and is a mechanism for the exchange of shares where buyers’ and seller’ price expectations match.
Because the company’s shares are no longer trading on a regulated market, Vatukoula Gold Mine’s has cautioned there may be a delay before any transactions in these shares are completed.
This, it said, as there may not be sufficient demand from buyers and seller. It may also mean that it may be difficult to adequately assess the value of any investment in the company’s shares.
Feedback: rachnal@fijisun.com.fj