China Mining International plans to raise $2.975 million by placing out new shares to a group of investors including its own executive director and CEO Zhai Kebin.

The placement will be via two tranches with a total of 70 million shares. The shares issued under the first tranche will be at 4.2 cents each and those to be issued under the second tranche at 4.3 cents each.

 

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.

&ldquo The company believes that the proposed placement will strengthen the balance sheet and provide flexibility&rdquo 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.