Expiry of Warranties

 

TIDMCGM 
 
RNS Number : 6543T 
China Goldmines PLC 
01 October 2010 
 

                  China Goldmines plc ("CGM" or the "Company") 
 
                              EXPIRY OF WARRANTIES 
On 27 August 2009 CGM announced the disposal by its wholly owned subsidiary, 
Global Resource Ventures Limited ("GRV"), of Westralian Resources Pty. Ltd. to 
Cosmos Castle Management Limited ("Cosmos") (the "Transaction").  The 
Transaction was approved at the General Meeting of the Company held on 21 
September 2009 and the disposal was completed on 29 September 2009. 
Under the terms of the Transaction CGM guaranteed, as principal obligor, in 
favour of Cosmos and its assigns or successors, the due and punctual performance 
and observance by GRV of its obligations, agreements, warranties and 
undertakings under the Share Purchase Agreement and the other documents relating 
to the Transaction and indemnified Cosmos and its assigns or successors against 
all losses, damages, costs and expenses arising from any breach by GRV of its 
obligations, agreements, warranties and undertakings.  Additionally, CGM 
provided warranties to Cosmos and agreed to indemnify Cosmos, its officers, 
directors, affiliates, stockholders, shareholders, successors and assigns. 
CGM's liability in relation to this guarantee, the indemnities and the 
warranties was limited to the sum of USD10,000,000 in aggregate. 
CGM is pleased to announce that the period during which claims could be brought 
in respect of the guarantee, the warranties and the indemnities expired on 29 
September 2009, without any antecedent breaches being claimed by Cosmos. 
CGM has existing funds of approximately US$22 million (approximately GBP13.9m or 
28p per share). 
 
As announced on 30 September 2010 the Company's shares have been suspended from 
trading on AIM. 
 
Enquiries: 
 
+--------------------------+-------------------------------------+ 
| China Goldmines                                                | 
+----------------------------------------------------------------+ 
| Robert Adair             | Tel: [phone]                | 
|                          |                                     | 
+--------------------------+-------------------------------------+ 
| Marinko Vidovich         | Tel: [phone]                | 
+--------------------------+-------------------------------------+ 
|                          |                                     | 
| Brewin Dolphin (Nomad)   |                                     | 
+--------------------------+-------------------------------------+ 
| Alexander Dewar          | Tel: [phone]               | 
|                          |                                     | 
+--------------------------+-------------------------------------+ 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCEAKNEDFLEEFF