VATUKOULA Gold Mines is anticipating a reduction in its gold production for its present quarter.
This is after heavy rainfall experienced last month disrupted underground operations at the mine.
"Underground mining operations at the Vatukoula mines were disrupted following extensive rainfall in the northern area of Viti Levu which caused some flooding in the lower levels of the mine and an accident in the Smith Shaft," the company said in a statement.
The company said the effect of the heavy rainfall affected mine production for almost a week.
"Reduced shaft capacity was also experienced for about 12 days while inspections and repairs to the Smith Shaft were undertaken and the shaft returned to normal operation. Limited hoisting occurred during this time.
"It is expected that the disruption will reduce anticipated gold production for the current quarter by about 2000 to 3000 ounces."
The mining company maintains every effort will be made to ensure that there will be no material adverse effect on their forecast of annual production of 65,000 ounces.
Meanwhile, the company has also signed a deal with a new Chinese mining company.
The company announced that it entered into a subscription agreement with Zhongrun International Mining Company Limited, with Zhongrun subscribing for nine million new ordinary shares in Vatukoula Gold Mines $USS0.97c ($F1.72) each to raise úGB5.4 million ($F15.65m).
The deal will see Zhongrun International Mining Co. Ltd have a 9.2 per cent stake in the company.