29th Oct 2007 07:01
GVM Metals Ltd29 October 2007 GVM METALS LIMITED ("GVM" OR "THE COMPANY") 29 OCTOBER 2007-------------------------------------------------------------------------------- ACQUISITION OF COAL OF AFRICA The Company wishes to advise that an additional £10 million has now been paid aspart of the £35.5 million payable to acquire a 70% interest in Coal of Africa ("CoAL"). In consideration for the £21.5 million already paid in relation to theacquisition, as previously announced, the first stage of the acquisition hasbeen completed and the Company has been issued 93 shares in CoAL, representing46.6% of the entire issued capital of CoAL. Further, and as a result, theCompany has also today allotted and issued 8,888,888 shares owed in partconsideration for the acquisition. CoAL is a South African company that owns the Mooiplaats Coal Project andsurrounding New Order prospecting rights. The properties owned by CoAL arelocated within 2 kilometres of the Camden Power Station near Ermelo and arebeside the main rail line to the Richards Bay export coal terminal. Interimdrill results to date have already delineated a JORC compliant Measured Resourceof 43 million tonnes and an Inferred Resource of a further 240 million tonnes. Transfer to the Company of the remaining 47 shares required to complete thesecond stage of the acquisition of a 70% interest in CoAL will take place uponsatisfaction of outstanding conditions precedent, at which time the Company willmake the final payments of £10 million in cash and issue 4,444,445 shares dueunder the relevant acquisition agreements. Simon Farrell, Managing Director of GVM, today commented "The completion of thefirst stage of the CoAL acquisition is an important milestone for GVM as itfurther progresses the Company's objectives of commencing coal mining operationsin South Africa in the second half of 2008. Drilling and engineering studies areprogressing well, with the Company anticipating a development decision beforethe end of this calendar year, subject to regulatory consents." An Appendix 3B - "New Issue Announcement" will be made under separate cover,together with a section 708 Cleansing Notice. Authorised by SIMON J FARRELL Managing Director Notes: The information in this report as it relates to the geology, geochemistry andgeophysics, regarding Mooiplaats, has been prepared by Grant van Heerden. Grantvan Heerden has more than five years of experience in estimation, assessment of,and evaluation of Mineral Resources and Ore Reserves which are relevant to thestyle of mineralization under consideration. Grant van Heerden is a Senior CoalGeologist with SRK Consulting. Grant van Heerden has sufficient experience whichis relevant to the style of mineralisation and type of deposit underconsideration and activities herein reported, to qualify as a Competent Personas defined in the 2004 edition of the 'Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves' and Part two of the AIMGuidance Notes for Mining, Oil and Gas Companies. Grant van Heerden consents tothe inclusion in this report of such information in the form and context in which it appears. For more information contact:Simon Farrell, Managing Director GVM +61 417 985 383 or +61 8 9322 6776Nonkqubela Mazwai, Deputy Managing Director, GVM +27 83 690 9079Petronella Gorrie The Event Shop +27 82 827 8815Leesa Peters / Jos Simson Conduit PR +44(0) 20 7429 6606Olly Cairns / Romil Patel Blue Oar Securities Plc +44(0) 20 7448 4400 / + 61 8 6430 1631 www.gvm.com.au This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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