VDM responds to speculation

VDM Group has responded to rumours it will acquire mining rights at an Angolan copper project by saying the potential acquisition is incomplete with no certainty on its terms.

The company also confirmed it was reviewing strategic options to grow the business and will consider a capital raisings as part of its growth strategy, although details are uncertain.

In October last year, the company launched a recapitalisation program after a fiscal year net loss of $84.4 million.

Chinese company H & H Holdings and Australia Kengkong Investments took control of the moribund company, with chief executive Dongyi Hua adding four new business divisions including mining.

H & H has invested $15 million in the company, giving Dr Hua a 35 per cent stake in VDM, whilst Australia Kengkong’s owner Hiuming Luk holds 20 per cent.

VDM was up 8.3 per cent to 1.3 cents per share at the time of writing.