18th Mar 2005 15:44
GMA Resources PLC18 March 2005 GMA RESOURCES Plc NEWS RELEASE FOR IMMEDIATE RELEASE London, 18 March 2005 Substantial Shareholder Notice GMA Resources plc ("the Company") is pleased to announce a change in theshareholdings of two of the Company's major shareholders designed to stabiliseand strengthen its share register ahead of the major expansion of the Company'soperations at its Tirek/Amesmessa gold project in Algeria. A total of 14,000,000 shares associated with Chief Executive Officer, Mr ColinIkin was acquired yesterday by funds managed by RAB Capital plc. Thistransaction is seen by the Company to add significant strength to the shareregister. Mr Ikin will continue as Chief Executive Officer of the Company and asa sign of continued optimism in the Tirek/Amesmessa project, Mr Ikin hasvoluntarily agreed not to dispose of any further shares for a period of twelvemonths, without the prior consent of the Board of Directors of the Company. The details of the change in shareholding for Mr Colin Ikin follow: Mr Ikin has a current holding of 15,381,853 ordinary fully paid shares followingthe sale of 6,867,647 shares on 17 March 2005 through an off market sale at aprice of 15p. Mr Ikin's wife has sold her holding of 7,132,353 ordinary fullypaid shares on 17 March 2005 through an off market sale at a price of 15p. As reported earlier this week, following a successful drilling programme lastyear, the Company has confirmed that the investment costs are in line withprevious expectations and expects to be able to complete the construction of thenew 300,000 tpa Amesmessa treatment plant and associated infrastructure withintwelve months of contract award, at a capital cost of less than US$30 million. The Company has concluded that the majority of the explored area within theAmesmessa deposit can be mined using conventional open cut techniques. Thisdevelopment is strategically important in that it allows the Company to achieveits desired expanded production capacity at a lower capital investment cost andwith a significantly reduced mining risk than had the Company continued todevelop this zone as an underground mine only. It is expected that the new plant will treat ore grades of 13 g/t gold or betterand that the ore feed for the new plant will be mainly sourced from the new opencut mine to be established at Veins 8 and 9. The Company has also commencednegotiations with a number of Open Pit mining contractors as part of an OwnerMining versus Contractor Mining Study, and a decision on the mining fleet isexpected to be made in April 2005. ENDS For further information contact:GMA Resources Tel: + 33 678 636 518Colin Ikin, Chief Executive Website: www.gmaresources.plc.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Kemin Resources