THE gold mining company launched by North-East entrepreneur Karl Watkin is to raise more than £1.2m by placing 900,000 new shares in the business on the stock market. China Goldmines will use the proceeds to help its capital position, having recently paid the equivalent of £800,000 towards the acquisition of eight mines in the Guanzhuang Gold Project. That acquisition was announced last April 12 for a total of £12m. The company said yesterday it expected to make a further placing to meet its commitments for the acquisition of the eight mines and to provide additional working capital. Registered at Sandgate House on Newcastle’s Quayside, China Goldmines plc listed on AIM last February as a gold resources company focused on the discovery and development of gold projects in the Hunan Province of China. Just last month, China Goldmines said it was on target to find up to 10 times more gold in China than first expected. According to Mr Watkin’s estimation, the gold in the ground in China is worth between £30 and £50 an ounce, meaning the eventual haul from the company’s 10 mines could be worth anything up to £520m. Mr Watkin said then: “There will be massive expansion of the company in China and we will be looking to increase the number of staff by 1,000 people between now and the end of the year.” Mr Watkin also has business interests in Middlesbrough biodiesel firm D1 Oils, which he founded in 2000 with a number of other ventures. He is currently backing Viridion, a company based near Newcastle Airport, that markets artificial grass products to home owners. | 
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