According to China Mining International, the placement is to raise funds so as to give itself more working capital for fund the development and growth of its businesses, including a recently acquired agriculture business.
“The company believes that the proposed placement will strengthen the balance sheet and provide flexibility” for it to try and grow.
On Dec 17, the company completed the acquisition of a pomegranate growing business which was paid by issuing 162 million new shares at 4.3 cents each, or around $7 million.
China Mining International shares last traded at 4.2 cents.
