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From: Nigel
ArtDate: 30th November 2006
Section: (FILLYABOOTS NEWS RELEASES)
Remote Name: 87.74.94.219
Date: 10/12/06
Time: 09:35
30th November 2006
GVM Metals Ltd Announces JSE Listing and Limpopo Coal Acquisition
News Item - Conduit PR
ASX and AIM quoted mining and minerals processing company GVM Metals Limited (“GVM” or the “Company”), wishes to advise that today the Company will list on the main board of the Johannesburg Stock Exchange (“JSE”), this satisfying the last suspensive condition relating to the acquisition of a 74% interest in Limpopo Coal.
Therefore, the Board has resolved to issue 20,812,500 fully paid ordinary shares in the Company to the vendors of an interest of 74% of Limpopo Coal, as approved by shareholders on 28 June 2006. These shares will be admitted to trading on AIM.
GVM has embarked on an exciting program of coal exploration and mining in conjunction with its South African Black Empowered Partner (“BEE”), Motjoli Resources (Proprietary) Limited, and views the listing as an important step to becoming a major player in the South African coking and steam coal market.
GVM Managing Director, Simon Farrell today said “Building on our Australian and London investor base, GVM is now able to attract South African investors as shareholders which is appropriate given that our assets are predominantly located in this country. We believe that an opportunity has been created for South Africans to invest in their own resources, and share in our growth.”
GVM decided to list on the JSE in order to effectively operate in the South African Market, where Reserve Bank restrictions on both individuals and companies have made the acquisition of South African assets by foreign companies issuing shares difficult. The ability to expand the asset base with both cash and shares gives the Company greater flexibility with those vendors wishing to participate in the value growth of the assets they are selling.
GVM has its primary listing on the Australian Stock Exchange with a secondary listing on the Alternative Investment Market (AIM) of the London Stock Exchange.
GVM has decided to focus on the opportunities presented in South African coal mining with investments in the Holfontein and Limpopo coal projects located in the Mpumulanga and Limpopo provinces of South Africa respectively. GVM plans to bring Holfontein into production in the first half of 2008 and the Limpopo project the following year.
Further, GVM recently announced the execution of a binding Heads of Agreement with Motjoli, to acquire Motjoli’s 51% interest in the Holfontein coal project, taking GVM’s interest to 100%. Further, the Heads of Agreement includes the acquisition of Motjoli’s 50% interest in the Baobab J.V. coal project and its 100% interest in three Limpopo prospecting licenses adjacent to those held by the Baobab J.V.
Motjoli’s 50% interest in the Baobab J.V. with Baobab Mining and Exploration (“BME”), a wholly owned subsidiary of Petmin Ltd, consists of granted prospecting rights over sixteen farms in the Soutpansberg/Mopane coal fields located within the Limpopo Province in the north of South Africa. These farms intermingle with or adjoin farms held by Rio Tinto as part of their Chapudi Project. The total area of these farms is in excess of 23,000 Hectares, bringing GVM’s total interests in the Limpopo coalfields to approximately 32,000 Hectares.
Motjoli is owned and controlled by Mr Nchakha Moloi and Ms Nonkqubela Mazwai. Mr Moloi is also the chairman of Alexkor as well as a director of a number of other organisations. Ms Mazwai is a director of the Central Energy Fund and the Strategic Fuel Fund. GVM sees its partnership with Motjoli as critical to forging a sustainable relationship with a highly credible BEE company to the benefit of both parties.
GVM also holds 100% of NiMag (Proprietary) Limited, a producer of a range of metal alloys and fibres based in Magaliesburg near Johannesburg in South Africa. Nimag supplies approximately 40% of world demand for nickel magnesium and ferro-nickel magnesium products.
For more information contact:
Simon Farrell, Managing Director GVM +61 417 985 383 or +27 828 230 615
Leesa Peters Conduit PR +44(0) 20 7429 6606
Olly Cairns Corporate Synergy Plc +44(0) 20 7448 4400
Jos Simson Conduit PR Ltd 76 Cannon St EC4N 6AE Direct: +44 (0) 20 7429 6603 Office: +44 (0) 20 7429 6666 Fax: +44 (0) 20 7429 6699 Mob: +44 (0) 789 987 0450
www.conduitpr.com
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