12th Apr 2006 16:12
GMA Resources PLC12 April 2006 GMA Resources Plc ("GMA" or "the Company") 12 April 2006 Placing GMA Resources Plc announces that it has raised approximately £5,053,860 beforeexpenses by way of a placing of 56,154,000 new ordinary shares of £0.01 each at9 pence per share ("Placing") which have been placed with institutionalshareholders through Mirabaud Securities. The new ordinary shares will represent17.71% of the enlarged share capital of the Company. In addition, 28,077,000warrants have been granted over ordinary shares, exercisable until 12 April 2008at 13 pence per share. The ordinary shares are due to be admitted to trading onAIM on or around 19 April 2006. Use of Proceeds The proceeds of the Placing will be used to finance GMA's share of thedevelopment costs relating to the Tirek-Amessmessa Gold Project in Entreprised'Exploitation des Mines d'Or ("ENOR"), the owner of the Tirek-Amessmessa goldproject, in which GMA owns a 52% interest. The Board of ENOR recently approvedthe construction of a 1500 tonnes per day heap leach plant at Amessmessa and theupgrade of the Tirek CIL plant from 150 to 300 tonnes per day. Construction isstarting immediately and it is expected to produce 100,000 ounces of gold peryear, at a cash cost of US$258 per ounce of gold, starting in January 2007. Enquiries: GMA Resources PlcDouglas Perkins - Chief Executive OfficerTel: +44 (0) 20 7253 7670Mobile: +1 514 806 6788 Philip Secrett/Fiona OwenGrant Thornton Corporate FinanceTel: +44 (0) 20 7383 5100 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Kemin Resources