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Market: AIM
Sector: Nonequity Investment Instruments
EPIC: CGM
Latest Price: 0.00p  (0,00%)
52-week High: 24.00p
52-week Low: 24.00p
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China Goldmines
www.chinagoldmines.com

Following the disposal of the Company's interest in Westralian Resources Pty Ltd on 29 September 2009, the Company has no further interest in mining operations in China or elsewhere. The Company is regarded as an investing company under the AIM Rules for Companies.

Full China Goldmines profile here
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China Goldmines exits China, to sell entire portfolio of gold projects for $26.35 million

27th Aug 2009, 8:48 am

There certainly appears to be a fair amount of capitulation in recent months from mining juniors with assets in China.  After a surge of investment from small cap explorers in the past decade, more recently the restriction of capital combined with difficulties in developing assets through to production have forced a number of companies to sell up and move on.
 
China Goldmines added its name to the list today, announcing that it would sell its subsidiary Westralian Resources to Cosmos Castle Management for a gross consideration of US$26.35 million (China Goldmines expects net proceeds of US$20.65 million).

Westralian Resources holds all of China Goldmines current assets, which includes 8 gold mines plus associated equipment, infrastructure, licences and permits, and two exploration permits in the Guanzhuang Project, Hunan Province.
 
Since early 2008, China Goldmines has been attempting to ramp up production at the underground goldmines through upgrading the infrastructure and equipment in place. The company however has run into difficulties with theft, despite beefing up security, and “other local community issues”.
 
Today the company noted that the project still required at least US$15 million in capital to develop the underground infrastructure.

Assuming the transaction completes, China Goldmines intends to use the cash to acquire other assets.

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