Canadian Zinc raises Vatukoula Gold stake to 20.01 pct

Fiji-focused Vatukoula Gold Mines PLC (AIM: VGM) said Canadian Zinc Corp (TSX: CZN; OTCBB: CZICF) has exceeded a 20 percent shareholding in the group and now controls 547,669,022 Vatukoula shares, or 20.01 percent of the capital.

In May 2009 Vatukoula announced a strategic partnership with Canadian Zinc after approaches it announced in April had been withdrawn and that talks with all parties considering making an offer for the company had ended.

Canadian Zinc had agreed to subscribe for 200 million new Vatukoula shares at 0.6 pence per share, which would raise £1.2 million for the company and increase CZ’s holding to 20.01 percent from its then 13.7 percent stake.

Vatukoula had also conditionally agreed to grant to CZ an option to acquire up to 250 million further shares in the company in order to maintain its equity stake in Vatukoula if a call option previously granted by CZ over 200 million existing CZ shares to Viso Gero Global Inc is exercised by the January 9 2010 deadline.

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