7th Aug 2007 07:00
China Goldmines PLC07 August 2007 7 August 2007 China Goldmines plc (the "Company" or "CGM") Placing by Brewin Dolphin Securities Limited of 900,000 New Ordinary Shares of 1p each at 140 pence per Ordinary Share The Company announces that it is placing 900,000 new ordinary shares of 1p eachin the Company with institutional investors at a price of 140 pence per share(the "Placing") to raise £1,260,000 million before expenses. The net proceeds of the Placing will be utilised to enable the Company to meetits immediate working capital requirements having recently paid RmB 12 million(approximately £800,000) towards a deposit, transfer fees, stamp duty and taxesin respect of the acquisition of the licences and assets of the eight mines inthe Guanzhuang Gold Project, which was announced on 12 April 2007 andsubsequently updated on 3 July 2007 The Company anticipates a further placing toraise additional funds to fulfil its commitments for the acquisition of thelicences and assets of the eight mines and to provide additional workingcapital. The new ordinary shares will rank pari passu in all respects with the existingordinary shares in the Company. Application will be made for the new ordinaryshares to be admitted to trading on the AIM market of the London Stock Exchangeand it is expected that trading will commence on 13 August 2007. Additional Information China Goldmines plc listed on AIM on the 7 February 2006 as a gold resourcescompany focussed on the discovery and development of gold projects in the HunanProvince of China. The Company is preparing a feasibility study on its Guanzhuang Gold Project,where a resource of 1.8 million ounces within the top 325m from surface and overa strike distance of 1.5km has been identified from its 100% owned/controlledShenjiaya Prospect. The Company's target is to further increase this resource bya factor of 4 to 6 times with a continuing exploration program. The Shenjiaya Prospect consists of eight gold mines which the Company plans toconsolidate with the aim of having a long life mining production of 150,000 ozAu/pa in the near future. At the same time as mining the existing eight mines,China Goldmines will continue to investigate the potential of the project areathat remains under explored. For further information: China Goldmines plcFrank Vanspeybroeck (CEO) Mobile: +61 41 116 6276Alex Worrall +44 207 788 7621Marinko Vidovich (CFO) Mobile: +61 41 997 4744Changsha Office +86 731 515 8211 Brewin Dolphin Securities LimitedAlan Stewart / Jon Fitzpatrick (Corporate Finance) +44 141 221 7733Jamie Cumming (Corporate Broking) +44 141 221 7733 Parkgreen CommunicationsClare Irvine/Justine Howarth +44 20 7851 7480 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
CGM.L