* Still needs regulator, shareholder approval
* Investing in gold mines; looks to replenish cash flow
SHANGHAI, Aug 16 Zhongjin Gold (600489.SS) said
on Monday it planned a private placement of up to 150 million A
shares to raise about 4.1 billion yuan ($603.6 million) to buy
assets from its parent, state-owned China National Gold Group.
The price per share will be no lower than 27.35 yuan, it said
in a statement to the Shanghai Stock Exchange.
Zhongjin's shares have been suspended from Aug 10 pending an
announcement on private share placement plans and are set to
restart trading on Monday, according to a statement last week.
The firm said it planned to buy assets in three gold mines
owned by China National Gold Group to help support its own
expansion, with proceeds from the share placement also to help
replenish its cash flow.
Zhongjin said it would issue shares to up to 10 investors,
but did not give details.
Zhongjin is also investing in the expansion of a copper and
China National Gold would remain Zhongjin's controlling
shareholder with a stake no lower than 47 percent after the
issuance, from the current 52.4 percent, according to the
The placement still requires approval from regulators and
(Reporting by Farah Master and Rujun Shen; Editing by Jonathan