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Epic & Msn data
Epic CGM
Time: 08:04:45
Mid Price: 20.50
Change Today: 0.50 Ascending
Change % Today: 2.50 Ascending
Fifty Two Week High: 27.00
Fifty Two Week Low: 11.50
Market Capital: 9.94
Period & price data
Period Price
Now: 20.50
3 Months ago:
6 Months ago:
1 Year ago:
Additional information
Additional Information
Market: AIM
Sector: General Mining - Gold
Epic: CGM
News: Latest news
Web Site: China Goldmines
Other Articles: 18-05-200923-01-200907-01-2009

China Goldmines

China Goldmines plc is a gold resource company focussed on the discovery and development of gold projects in the Hunan Province. China is now the world’s largest gold producing nation.

China Goldmines’ Shenjiaya and Xiaotaoyuan Prospects sit in a mineralised and base metal region in the western part of the province. It has been independently estimated that a JORC code compliant inferred resource estimated a gold resource of 1.83 million ounces is contained in the Shenjiaya Prospect.

The eight gold mines within the prospect are expected to extract 150,000 ounces of gold annually over the long term.

In early 2008, China Goldmines poured its first gold to mark the opening of its new production plant at its Shenjiaya Prospect.
Thursday, August 27, 2009

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

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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