| Tue 10 Apr 2007, 9:26 | | GVM - GVM Metals Limited - Share Placement |
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GVM
GVGVM
GVM - GVM Metals Limited - Share Placement, Proposed Notice of GM and Update on
Coal Assets
GVM Metals Limited
(previously, "Golden Valley Mines Limited")
(Incorporated and registered in Australia)
(Registration number ACN 008 905 388)
Share code on the JSE Limited: GVM & ISIN: AU000000GVM1
Share code on the Australian Stock Exchange Limited: GVM & ISIN: AU000000GVM1
("GVM" or `the Company")
Share Placement, Proposed Notice of GM and Update on Coal Assets
Placing of 37,350,000 new ordinary shares to raise up to GBP12.7m
GVM Metals Limited (`GVM` or the `Company`) is pleased to announce that it has
today completed a fundraising of up to GBP12.7m by way of a placing of up to
37,350,000 new ordinary shares in GVM at 34p per share (the `Placing`).
The monies have been raised from clients of London based Blue Oar Securities
Plc* and Mirabaud Securities Limited, as joint brokers to the Company, together
with certain institutional investors based in South Africa. The capital raised
will be used to fund the acquisition of Kelso Mining Limited ("Kelso") as
announced on 7 February 2007, subject to the Directors resolving to acquire 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 May
2007. 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 GBP2.5m 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 made
for the new ordinary shares the subject of the placings to be admitted to
trading on AIM, ASX and the JSE as required.
The Company is pleased to advise that it has received South African Ministerial
Approval under Section 11 for the Baobab Coal Project, thus clearing the way for
to the completion of the acquisition of the coal interests of Motjoli Resources
(Proprietary) Limited ("Motjoli Coal Interests"). To reiterate, finalisation of
the Motjoli Coal Interests acquisition will allow completion of GVM`s
acquisition of the remaining interests in Limpopo, Holfontein and Baobab,
thereby taking its ownership in each case to 100%.
With regard to the proposed acquisition of the Kelso Mining Limited, GVM is
still awaiting a final CPR on the Mooiplaats Coal Project, which is expected
within 6 weeks.
Following receipt of the CPR for Mooiplaats and an Independent Expert`s Report
on the Motjoli Coal Interests (as required by the Corporations Act), GVM will
announce and post a further notice of general meeting to seek shareholder
approval for both the Kelso and Motjoli Coal Interests acquisitions.
The Company also advises that discussions have also commenced with Eskom
regarding the conclusion of a possible off-take agreement from the Mooiplaats
Coal 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
10 April 2007
South African Sponsor to GVM
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 10/04/2007 09:26:01 Produced by the JSE SENS Department.
