A Chinese company, Zhongrun International Mining, has signed an agreement to take a stake of up to 17.6 per cent in Fiji’s Vatukoula Gold Mine.

It is the first major Chinese investment in gold mining in Fiji.

The deal, announced on the London Stock Exchange, will see Zhongrun take an initial stake of 9.2 per cent in Vatukoula Gold Mines by buying 9 million new ordinary shares for US97 cents each.

The option to buy a further 9 million shares at $1.24 is open until July 23rd.

That would give Zhongrun a total 17.6 per cent stake in Fiji’s oldest gold mine at a time when its share price has been languishing.