Acquisition Strategy Update
September 10 2010 - 4:33AM
UK Regulatory
TIDMCGM
RNS Number : 4874S
China Goldmines PLC
10 September 2010
Update on acquisition strategy
China Goldmines today provides an update to shareholders on progress with its
investment plans.
On 8 March the Company announced the result of its strategic review, the core
principal of which is to examine projects where the Board believes shareholder
value can be created using funds retained from the disposal of Westralian
Resources pty.
The disposal of Westralian Resources pty. completed on 29 September 2009 at
which time CGM became an investing company. Under the AIM Rules for Companies,
CGM is required to complete a reverse takeover or otherwise implement an
investing strategy, subject to shareholder approval within 12 months of becoming
an investing company.
The Company is continuing to evaluate investment propositions but acknowledges
that it will no longer be able to obtain shareholder approval of any particular
proposition in sufficient time to complete an acquisition prior to the 29
September 2010 deadline under the AIM Rules. The Directors therefore expect the
trading of the Company's shares on AIM to be suspended at 07:00 on 30 September
2010. The Company will remain subject to the AIM Rules for Companies and any
decision regarding a new project specific acquisition will remain subject to
shareholder approval. If a suitable proposition is not found a return of cash
capital will be proposed to shareholders. In the event that the Company is
unable to complete an acquisition by 31 March 2011 the admission of its ordinary
shares to AIM will be cancelled.
CGM is guarantor to warranties made to the acquirer of Westralian Resources pty,
its former mining subsidiary with a maximum liability of $10m. These warranties
expire on 29 September 2010, save for any antecedent breaches claimed by the
acquirer which have not been resolved. The Company is currently not aware of
anything which may lead to a claim.
Enquiries:
+---------------------+-----------------------------+
| China Goldmines |
+---------------------------------------------------+
| Robert Adair | Tel: +44 7872 930 114 |
+---------------------+-----------------------------+
| Marinko Vidovich | Tel: +61 8 6216 5200 |
+---------------------+-----------------------------+
| Brewin Dolphin | |
| (Nomad) | |
+---------------------+-----------------------------+
| Alexander Dewar | Tel: +44 131 529 0276 |
+---------------------+-----------------------------+
| Neil McDonald | Tel: +44 141 221 7733 |
+---------------------+-----------------------------+
| Threadneedle | |
| Communications | |
+---------------------+-----------------------------+
| Laurence Read | Tel: +44 20 7653 9855 |
+---------------------+-----------------------------+
| Beth Harris | Tel: +44 20 7653 9853 |
+---------------------+-----------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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