Tongguan Gold Group (HKG:0340) agreed to issue a total of 327,420,000 shares to two third-party subscribers at HK$0.69 apiece to raise net proceeds of around HK$225.5 million, a Tuesday filing with the Hong Kong bourse said.

The firm will use proceeds from the issue to develop a mining production line, conduct mine drilling activities, construct dormitories and related facilities at its mining locations, engage in green mining construction, and replenish working capital.