China Goldmines Plc, which was formed to develop and grow its gold project in China, today announced its admission to AIM and a placing of New Ordinary Shares.

China Goldmines was established to develop mining prospects in China with an initial specific focus on gold. China Goldmines has now entered into its first agreement in China - a Joint Venture with the Hunan Geology and Exploration Bureau, through The Hunan Westralian Mining Company Ltd in the Guanzhuang Project, an existing gold producing area in the mineral rich Hunan Province. The purpose of the JV Company is to explore and develop the Cooperation Area.

Following the successful placing of 7,500,000 new Ordinary Shares at 60 pence each, the Company has raised £4.5 million of new money, giving an expected market capitalisation on admission of approximately £13.5 million. Proceeds will be used to enable further investigation and analysis to delineate gold reserves in China’s Hunan Province and to commission a Bankable feasibility study as an immediate precursor to seeking finance to exploit reserves through the new Joint Venture Company.

Commenting on China Goldmines AIM debut, Frank Vanspeybroeck, Chief Executive, said:

“China Goldmines was created to address the significant opportunities that exist for the international management and funding of businesses in China. With a burgeoning economy, the Chinese Government has made clear its support for the development of the country’s mining resources. The AIM funding should let us maximise this opportunity. We are delighted to be making our debut on AIM.

“With our strong Board and management team, the right partners, access to proven prospects and appropriate initial financing, we face the future with both enthusiasm and confidence.”