10th Apr 2007 07:19
GVM Metals Ltd10 April 2007 GVM METALS LIMITED Share Placement, Proposed Notice of GM and Update on Coal Assets • Placing of 40,295,000 new ordinary shares to raise up to £13.7m Placing and notice of EGM GVM Metals Limited ('GVM' or the 'Company') is pleased to announce that it hastoday completed a fundraising of up to £13.7m by way of a placing of up to40,295,000 new ordinary shares in GVM at 34p per share (the 'Placing'). Themonies have been raised from clients of London based Blue Oar Securities Plc*and Mirabaud Securities Limited, as joint brokers to the Company, together withcertain institutional investors based in South Africa and will be used to fundthe acquisition of Kelso Mining Limited ("Kelso") as announced on 7 February2007, subject to the board of Directors (the "Board") resolving that it is inthe best interests of the Company and its shareholders to exercise an option toacquire 70% of the issued share capital of Coal of Africa Limited ("CoAL"),which owns the Mooiplaats Coal Project. The Placing requires the approval of GVM shareholders at a General Meeting ("GM"), which the Company anticipates will be held during the week ending 11 May2007. In conjunction with the Placing, the notice of GM will also seek: 1. the ratification of the placing of 12,200,000 new GVM ordinary shares at 20p each to Global Coal Management plc as announced on 21 December 2006; 2. the ratification of the appointment to the Board of Directors of Messrs Steve Bywater and Graham Taggart from Global Coal Management plc; 3. the approval of the placing of 8,333,333 new GVM ordinary shares at 30p each to raise £2.5m as previously announced on 20 February 2007; and 4. the approval, as may be required, to allot further shares in GVM of up to a maximum of 30 million new GVM ordinary shares. The Notice of General Meeting will be distributed to shareholders in due course. Subject to and following approval of the resolutions, application will be madefor the new ordinary shares that are the subject of the placings to be admittedto trading on AIM, ASX and the JSE as required. Update on the acquisition of other coal interests The Company is pleased to advise that it has received South African MinisterialApproval under Section 11 for the Baobab Coal Project, thus clearing the way forto the completion of the acquisition of the coal interests of Motjoli Resources(Proprietary) Limited ("Motjoli Coal Interests"). To reiterate, finalisation ofthe Motjoli Coal Interests acquisition will allow completion of GVM'sacquisition of the remaining interests in Limpopo, Holfontein and Baobab,thereby taking its interest therein in each case to 100%. With regard to the proposed acquisition of the Kelso Mining Limited, GVM isstill awaiting a final CPR on the Mooiplaats Coal Project, which is expectedwithin 6 weeks. Following receipt of the CPR for Mooiplaats and an Independent Expert's Reporton the Motjoli Coal Interests (as required by the Corporations Act), GVM willannounce and post a further notice of general meeting to seek shareholderapproval for both the Kelso and Motjoli Coal Interests acquisitions. The Company also advises that discussions have also commenced with Eskomregarding the conclusion of a possible off-take agreement from the MooiplaatsCoal Project. For more information contact: Simon Farrell, Managing Director GVM +61 417 985 383 Olly Cairns Blue Oar Securities Plc* +44(0) 20 7448 4400 Peter Krens Mirabaud Securities Ltd +44(0) 20 7878 3362 Leesa Peters / Jos Simson Conduit PR +44(0) 20 7429 6606 * Blue Oar Securities Plc was formerly Corporate Synergy Plc and acts as Nominated Adviser & Joint Broker to the Company. www.gvm.com.au This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
MCM.L