Shares in Shanghai-listed Zhongjin Gold jumped their 10 per cent daily limit yesterday after the firm unveiled a plan to raise as much as 6.2 billion yuan in a private share placement to fund acquisitions. Tianjin-based Zhongjin Gold, the mainland's largest listed gold miner by market value, plans to sell up to 130 million new shares, or 32 per cent of its enlarged share capital, to a group of no more than 10 investors, including China Gold Group, its parent company. Zhongjin did not say how much the shares would be priced but indicated that it would be at least 90 per cent of the average price in the previous 20 days up to the announcement. Based on the stock's close yesterday, up 4.24 yuan at 47.71 yuan, the firm may raise up to 6.2 billion yuan from the deal. The stock has gained 153 per cent this year, beating the 34 per cent increase in the Shanghai A-Share Index. Zhongjin will use the part of the money to buy gold mines and related assets from China Gold Group, which now owns 48.1 per cent of the company and will keep its stake at at least 45 per cent. The company also plans to spend some proceeds on expansion of existing production facilities. China Gold would inject its gold mines in Liaoning, Inner Mongolia, Henan, Guangxi, Jilin, Shaanxi and Hubei in exchange for the shares, the company said, without giving other details such as the gold reserves or valuation. Zhongjin produced 6.3 tonnes of gold last year, ranking fifth in the mainland by output. Other gold miners are also planning to raise funds by issuing new shares to capitalise on rising gold prices and the booming stock market. Shanghai-listed Shandong Gold Mining said in August last year it planned to sell up to 100 million new shares at not less than 24.93 yuan each to raise fund for the acquisition of five mines from its parent. Hong Kong-listed Zijin Mining Group said in February that it aimed to sell as many as 1.5 billion A shares on the Shanghai Stock Exchange to fund its overseas expansion.