Wanguo Gold Group (HKG:3939) agreed to allot and issue 165,600,000 shares, about 20% of the existing and 15.28% of the enlarged total number of issued shares, to Zijin Mining's subsidiary Gold Mountains (H.K.) International Mining.

Under the subscription agreement, the shares will be issued for HK$1.38 billion at HK$8.33 per share, a Monday filing with the Hong Kong Exchange said.

The company will raise net proceeds of HK$1.38, about HK$300,000 less than the gross proceeds, and plans to use half on the exploration and development of the Gold Ridge Mine and the remaining half for its general working capital.

The mining and ore processing company's shares were up nearly 5% in recent trade.

Price (HKD): $9.71, Change: $+0.46, Percent Change: +4.97%