Shandong Gold Mining will issue 100 million shares in a private placement worth 2.5 billion yuan (US$314 million), in order to buy gold mines from its parent, the Shanghai-listed gold miner said yesterday.

The purchase would increase the listed firm¡¯s reserves by 88 tons and raise its annual gold output by 8.234 tons. Shandong Gold said the shares would be priced at 24.93 yuan each, the average of the last 20 trading days. Following the completion of the share issue in October and assuming an average gold price of 160 yuan per gram, Shandong Gold said its 2006 profit would rise by 41.86 million yuan and its 2007 profit 251.15 million yuan.

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