GGG Ggg Resources

 
TIDMGGG 
 
Central China Goldfields plc 
 
                           (the "Company" or "GGG") 
 
                       GBP1,125,000 INSTITUTIONAL PLACING 
 
19 July 2010 
 
Central China Goldfields plc is pleased to announce that it has raised GBP 
1,125,000 in a share placing (the "Placing"), with over GBP1,000,000 of this sum 
raised from specialist institutional resource funds. 
 
The new funds, coupled with GBP300,000 recently received into the Company from 
the sale of Chinese assets, as well as a further anticipated receipt of GBP 
1,600,000 after tax due in the coming months, will give the Company cash 
resources in excess of GBP3,000,000. 
 
The Company is therefore fully funded to fast-track its principal asset, the 
Bullabulling gold project, to banking feasibility, which is scheduled for the 
third quarter of 2012. The initial cost of bringing the project to the bankable 
feasibility stage is estimated to be approximately A$4,000,000 (GBP2,500,000) of 
which GGG is responsible for 50% or GBP1,250,000. 
 
GGG is in the position to fast-track Bullabulling because it is the site of a 
former gold mine in the Western Australia gold mining district and has already 
been granted a series of mining leases. Extensive existing data based on 12,000 
earlier drill holes suggests that Bullabulling has the potential to yield 
large, open pittable gold deposits with high grade lodes. The Company is 
currently embarking on a new drilling programme, and expects to report to 
shareholders the first assay results in the next few weeks. 
 
The potential of Bullabulling to become a sizeable gold mine has attracted two 
new major institutional resource funds. Funds controlled by Baker Steel Capital 
Managers and CQS Asset Management Limited have invested in excess of GBP1,000,000 
with the remaining GBP125,000 raised mainly from the Directors of the Company. 
 
The Company's new Non-Executive Director, experienced Australian engineer 
Michael Short, who joined the Board in June, has subscribed to 2,000,000 
placing shares. A further four Directors increased their holdings at this time. 
 
In total, the placing is for 29,605,263 new ordinary shares placed at 3.8 pence 
per share (the "Placing Shares"). For every three Placing Shares the Company 
issued one Placing Warrant exercisable at 6.3 pence until 19 January 2012 (18 
months). In total 9,868,421 Placing Warrants are being issued. 
 
Application will be made for the Placing Shares to be admitted to trading on 
AIM and it is expected that trading will commence on 23 July 2009. Following 
this placing, the total number of shares in issue will be 227,017,398. 
 
Following the above transaction funds controlled by Baker Steel Capital 
Managers will hold 19,800,000 ordinary shares, representing 8.72% of the issued 
share capital, and 6,600,000 Placing Warrants. 
 
Peter Ruxton, Chairman, comments: 
 
"It was important strategically that we secure funding from additional blue 
chip resource investors as we move Bullabulling towards gold production, 
anticipated to be in early 2013. It is therefore with great pleasure that I can 
now formally welcome both Baker Steel and CQS as new shareholders in this very 
exciting period for the Company." 
 
Following the Placing the Directors' shareholdings in GGG will be: 
 
                  Previous  Placing Shares    Total       Total     Percentage 
                   Shares                    Shares     Warrants   of Company's 
                                                                   Issued Share 
                                                                     Capital 
 
Michael Short         0       2,000,000     2,000,000    666,667      0.88% 
 
Paul McGroary*    8,240,625    330,000      8,570,625    110,000      3.78% 
 
Nigel Clark       4,010,568    200,000      4,210,568    66,667       1.85% 
 
Jeffrey           3,186,931    200,000      3,386,931    66,667       1.49% 
Malaihollo 
 
Ciceron Angeles    389,866     150,000       539,866     50,000       0.24% 
 
The total number of shares held by Directors following the Placing will be 
20,775,326 shares representing 9.15% of the share capital. 
 
*Includes 3,240,625 shares held by Marshall Lake Mining plc, of which Paul 
McGroary is a director. 
 
For further information, please contact: 
 
Dr. Jeffrey Malaihollo                Westhouse Securities Limited 
 
Tel: 01992 531820                     Tim Metcalfe / Martin Davison 
 
Email: info@ccgoldfields.com          Tel: 020 7601 6100 
 
www.ccgoldfields.com 
 
Gresham PR                            Alexander David Securities Limited 
 
Neil Boom                             Nick Bealer / David Scott 
 
Tel: 07866 805 108                    Tel: 020 7448 9820 
 
 
Bullabulling Gold Project 
 
Bullabulling, the site of former gold mine in the Western Australia gold mining 
district, is the Company's principal asset. Some 60km2 in size, Bullabulling 
lies 70km South West of Kalgoorlie in Western Australia. It is a sizeable 
project area held in a series of granted mining leases. 
 
Following extensive computer modelling of previously collected data, Central 
China Goldfields believe that there could be large, open pittable gold 
deposits, with high grade lodes. Central China Goldfields is testing this 
through new drilling programmes. 
 
The Company completed the acquisition of Bullabulling in May 2010, and intends 
to fast-track the mine into production by 2013, if further exploration results 
meet the Company's expectations. 
 
Bullabulling is part of the Eastern Goldfields. The Goldfields contain over 160 
deposits, 19 of which are greater than three million ounces of gold. 
 
Bullabulling is a 50:50 joint venture with Auzex Resources Limited, an 
ASX-listed Australian mining company. 
 
 
 
END 
 

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