| Mon 29 Oct 2007, 14:25 | | GVM - GVM Metals Limited - Acquisition of coal of |
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GVM
GVGVM
GVM - GVM Metals Limited - Acquisition of coal of 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 COAL OF AFRICA
The Company wishes to advise that an additional GBP10 million has now been
paid as part of the GBP35.5 million payable to acquire a 70% interest in Coal
of Africa ("CoAL").
In consideration for the GBP21.5 million already paid in relation to the
acquisition, as previously announced, the first stage of the acquisition has
been completed and the Company has been issued 93 shares in CoAL, representing
46.6% of the entire issued capital of CoAL. Further, and as a result, the
Company has also today allotted and issued 8,888,888 shares owed in part
consideration for the acquisition.
CoAL is a South African company that owns the Mooiplaats Coal Project and
surrounding New Order prospecting rights. The properties owned by CoAL are
located within 2 kilometres of the Camden Power Station near Ermelo and are
beside the main rail line to the Richards Bay export coal terminal. Interim
drill results to date have already delineated a JORC compliant Measured
Resource of 43 million tonnes and an Inferred Resource of a further 240
million tonnes.
Transfer to the Company of the remaining 47 shares required to complete the
second stage of the acquisition of a 70% interest in CoAL will take place upon
satisfaction of outstanding conditions precedent, at which time the Company
will make the final payments of GBP10 million in cash and issue 4,444,445
shares due under the relevant acquisition agreements.
Simon Farrell, Managing Director of GVM, today commented "The completion of
the first stage of the CoAL acquisition is an important milestone for GVM as
it further progresses the Company`s objectives of commencing coal mining
operations in South Africa in the second half of 2008. Drilling and
engineering studies are progressing well, with the Company anticipating a
development decision before the end of this calendar year, subject to
regulatory consents."
An Appendix 3B - "New Issue Announcement" will be made under separate cover,
together with a section 708 Cleansing Notice.
Authorised by
SIMON J FARRELL
Managing Director
Notes:
The information in this report as it relates to the geology, geochemistry and
geophysics, regarding Mooiplaats, has been prepared by Grant van Heerden.
Grant van Heerden has more than five years of experience in estimation,
assessment of, and evaluation of Mineral Resources and Ore Reserves which are
relevant to the style of mineralization under consideration. Grant van Heerden
is a Senior Coal Geologist with SRK Consulting. Grant van Heerden has
sufficient experience which is relevant to the style of mineralisation and
type of deposit under consideration and activities herein reported, to qualify
as a Competent Person as defined in the 2004 edition of the `Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves` and
Part two of the AIM Guidance Notes for Mining, Oil and Gas Companies. Grant
van Heerden consents to the inclusion in this report of such information in
the form and context in which it appears.
For more information contact:
Simon Farrell, Managing Director GVM +61 417 985 383
or +61 8 9322 6776
Nonkqubela Mazwai, Deputy Managing Director, GVM
+27 83 690 9079
Petronella Gorrie The Event Shop +27 82 827 8815
Leesa Peters / Jos Simson Conduit PR
+44(0) 20 7429 6606
Olly Cairns / Romil Patel Blue Oar Securities Plc
+44(0) 20 7448 4400
www.gvm.com.au
29 October 2007
South African Sponsor to GVM
PricewaterhouseCoopers Corporate Finance (Pty) Limited
Date: 29/10/2007 14:25:16 Produced by the JSE SENS Department.
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