BUZZ-Wanguo Gold hits over 5-month high as Zijin Mining buys shares

Reuters09-23

** Shares of mining group Wanguo Gold Group Ltd jump 8.3% to HK$10.02, their highest since April 12

** Stock on track for its biggest one-day rise since May 20

** Company says it has agreed to sell 165.6 mln new shares, or 15.28% of the enlarged share capital, to a unit of Zijin Mining , raising HK$1.38 bln ($177.12 mln) to fund exploration and development project of Gold Ridge Mine in the Solomon Islands with remainder for working capital

** Wanguo Gold will sell the new shares to Zijin Mining's wholly-owned Gold Mountains (H.K.) International Mining Co Ltd at HK$8.33 apiece, representing 9.95% discount to Friday close of HK$9.25 per share

** Hong Kong shares of Zijin Mining slips 0.3% while Shanghai stock gains 0.7%

** Hang Seng Commerce & Industry Index adds 0.9%, material index rises 1.1% and Hang Seng Index climbs 0.7%

** Stock of Wanguo Gold up 127.8% YTD

($1 = 7.7912 Hong Kong dollars)

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))

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