30th Nov 2006 08:51
GVM Metals Ltd30 November 2006 GVM METALS LIMITED JSE LISTING AND LIMPOPO ACQUISITION ASX and AIM quoted mining and minerals processing company GVM Metals Limited ("GVM" or the "Company"), wishes to advise that today the Company will list on themain board of the Johannesburg Stock Exchange ("JSE"), this satisfying the lastsuspensive condition relating to the acquisition of a 74% interest in LimpopoCoal. Therefore, the Board has resolved to issue 20,812,500 fully paid ordinary sharesin the Company to the vendors of an interest of 74% of Limpopo Coal, as approvedby shareholders on 28 June 2006. These shares will be admitted to trading onAIM. GVM has embarked on an exciting program of coal exploration and mining inconjunction with its South African Black Empowered Partner ("BEE"), MotjoliResources (Proprietary) Limited, and views the listing as an important step tobecoming a major player in the South African coking and steam coal market. GVM Managing Director, Simon Farrell today said "Building on our Australian andLondon investor base, GVM is now able to attract South African investors asshareholders which is appropriate given that our assets are predominantlylocated in this country. We believe that an opportunity has been created forSouth Africans to invest in their own resources, and share in our growth." GVM decided to list on the JSE in order to effectively operate in the SouthAfrican Market, where Reserve Bank restrictions on both individuals andcompanies have made the acquisition of South African assets by foreign companiesissuing shares difficult. The ability to expand the asset base with both cashand shares gives the Company greater flexibility with those vendors wishing toparticipate in the value growth of the assets they are selling. GVM has its primary listing on the Australian Stock Exchange with a secondarylisting on the Alternative Investment Market (AIM) of the London Stock Exchange. GVM has decided to focus on the opportunities presented in South African coalmining with investments in the Holfontein and Limpopo coal projects located inthe Mpumulanga and Limpopo provinces of South Africa respectively. GVM plans tobring Holfontein into production in the first half of 2008 and the Limpopoproject the following year. Further, GVM recently announced the execution of a binding Heads of Agreementwith Motjoli, to acquire Motjoli's 51% interest in the Holfontein coal project,taking GVM's interest to 100%. Further, the Heads of Agreement includes theacquisition of Motjoli's 50% interest in the Baobab J.V. coal project and its100% interest in three Limpopo prospecting licenses adjacent to those held bythe Baobab J.V. Motjoli's 50% interest in the Baobab J.V. with Baobab Mining and Exploration ("BME"), a wholly owned subsidiary of Petmin Ltd, consists of granted prospectingrights over sixteen farms in the Soutpansberg/Mopane coal fields located withinthe Limpopo Province in the north of South Africa. These farms intermingle withor adjoin farms held by Rio Tinto as part of their Chapudi Project. The totalarea of these farms is in excess of 23,000 Hectares, bringing GVM's totalinterests in the Limpopo coalfields to approximately 32,000 Hectares. Motjoli is owned and controlled by Mr Nchakha Moloi and Ms Nonkqubela Mazwai.Mr Moloi is also the chairman of Alexkor as well as a director of a number ofother organisations. Ms Mazwai is a director of the Central Energy Fund and theStrategic Fuel Fund. GVM sees its partnership with Motjoli as critical toforging a sustainable relationship with a highly credible BEE company to thebenefit of both parties. GVM also holds 100% of NiMag (Proprietary) Limited, a producer of a range ofmetal alloys and fibres based in Magaliesburg near Johannesburg in South Africa. Nimag supplies approximately 40% of world demand for nickel magnesium andferro-nickel magnesium products. For more information contact: Simon Farrell, Managing Director - GVM - +61 417 985 383 or +27 828 230 615 Leesa Peters - Conduit PR - +44(0) 20 7429 6606 Olly Cairns - Corporate Synergy Plc - +44(0) 20 7448 4400 www.gvm.com.au This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
MCM.L