| Wed 26 Sep 2007, 12:43 | | GVM - GVM - Acquisition of further coal interests |
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GVM
GVGVM
GVM - GVM - Acquisition of further coal interests in South Africa
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")
ACQUISITION OF FURTHER COAL INTERESTS IN SOUTH AFRICA
GVM Metals Limited ("GVM" or the "Company"), the Australian mineral processing
and coal mining company with assets in South Africa, is pleased to announce that
it has executed a Heads of Agreement to acquire 60% of the issued capital of
Tshikunda Mining (Proprietary) Limited ("Tshikunda"), a company owned by Basani
Investments (Proprietary) Limited (60%), and Ndilo Resources (Proprietary)
Limited - which owns the Tshikunda Coal Project, a 32,000 Ha property situated
between the Company`s Baobab project and Exxaro`s Tshikondeni coking coal mine.
Completion of both transactions will take GVM`s interest in the Tshikunda Coal
Project to 60%.
The consideration payable to acquire Tshikunda is ZAR20 million (approximately
A$3.5 million), subject to the following suspensive conditions:
1. obtaining the necessary approvals in terms of section 11 of the Mineral and
Petroleum Resources Development ("MPRD") Bill of South Africa;
2. obtaining the requisite approvals of the South African Reserve Bank as are
applicable;
3. obtaining any required approvals from the ASX.
Tshikunda Coal Project
The Tshikunda Coal Project consists of granted prospecting rights over 32,583
hectares in the Soutpansberg / Pafuri coalfields located within the Limpopo
Province in the north of South Africa. The area to be acquired adjoins the
Tshikondeni coal mine held by Exxaro Limited. The total area of the Tshikunda
Coal Project is 32,583 Ha, bringing GVM`s total interests in the Soutpansberg
coalfields to approximately 55,000 Ha. The Company holds a further 8,000 Ha as
part of its Thuli coal project.
GVM have committed up to ZAR50 million (approximately A$8.5 million) to explore
the prospect to a `bankable` stage. Thereafter, the parties will contribute
development or capital expenditure on a pro rata basis.
GVM Managing Director Simon Farrell said that the acquisition was an important
development in the Company`s goal of becoming a major player in the development
of the Limpopo coalfields. "Whilst very limited work has been undertaken on the
area in the past, it is now widely considered to be highly prospective as a
significant source of hard coking coal. What is particularly exciting is that
both Rio Tinto and ourselves believe the rank of coals improve eastwards of
their Chapudi and our Baobab projects and given that the value of coking coal is
now roughly double that of thermal coal, the dependence of a proximate power
station to get the project up and running starts to disappear."
Authorised by:
Simon Farrell
Managing Director
Contacts:
Simon Farrell - GVM Metals Leesa Peters / Abby Singleton - Conduit PR
+ 61 417 985 383 +44 (0) 20 7429 6600 /6606
Olly Cairns - Blue Oar Securities Petronella Gorrie - The Event Shop
+61 (0) 8 6430 1630 +27 82 827 8815
www.gvm.com.au
26 September 2007
South African Sponsor to GVM
PricewaterhouseCoopers Corporate Finance (Pty) Limited
Date: 26/09/2007 12:43:01 Produced by the JSE SENS Department.
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