Results of General Meeting

RNS Number:8903X
GVM Metals Ltd
06 June 2007



                                 GVM METALS LTD



                            ("GVM" or the "Company")



               RESULTS OF SHAREHOLDERS MEETING AND TRADING UPDATE



The Directors of GVM (AIM/ASX/JSE) are pleased to advise that all resolutions
considered at the General Meeting held 5 June 2007 were passed by shareholders.



The outcome of the meeting resulted interalia in the Company satisfying all the
conditions precedent necessary to complete the acquisition of a 100% interest in
the Baobab JV. and the Holfontein Project.  This is a critical step forward in
the Company's progress to becoming a significant coal producer.



The Company has placed 34,868,283 new ordinary shares in GVM ("Shares") to
acquire the remaining a 51% interest in Holfontein, the remaining 50% interest
in the Baobab Joint venture and 100% interest in additional Limpopo prospecting
rights, with the respective vendors.



Application will be made for the 34,868,283 Shares to be admitted to trading on
AIM. Following the admission of the Shares the number of Ordinary Shares on
issue will be 196,518,703.



In addition, a resolution was passed to issue 2,000,000 options exercisable at
$1.25 each on or before 30 September 2012 to Richard Linnell and 5,000,000
options exercisable at $1.25 each on or before 30 September 2012 to Simon
Farrell.



The current status of the Company's coal projects is set out below:



MOOIPLAATS



  * An infill drilling program is underway to convert a portion of the current
    inferred resources to a minimum of 60 million tonnes in the measured and
    indicated category
  * The inferred resource drilling program at Mooiplaats to date has covered
    approximately 7,000 Ha of the 20,000 Ha of the total property. Completion of
    this program has been suspended to conduct the above infill drilling as
    detailed above
  * Indicative quotes from potential contractors have been received on the
    basis of supplying an initial six million tonnes per annum of domestic
    thermal coal to Camden power station
  * The planned second phase of development is to produce approximately two
    million tonnes of anthracitic and export thermal coal per annum
  * Production expected to commence Q3 2008









LIMPOPO COAL PROJECT (Tuli Coalfield)



  * Work set to commence Q3 2007 to upgrade and expand the inferred resource
    of 352 million tonnes to indicated and/or measured
  * Bankable feasibility study to commence before the end of Q4 2007



BAOBAB COAL PROJECT (Soutpansberg Coal Field)



  * Work set to revalidate the previous drilling by Iscor/Kumba and bring the
    resources into JORC standard



HOLFONTEIN



  * The measured resource statement and geological model is expected to be
    completed by the end of June 2007
  * Production expected to commence Q3 2008



NiMag



  * EBIT for the year to 30 June 2007 is expected to be in the range of Zar 42
    /45 million ($A7-8 million)



Simon Farrell, Managing Director, GVM Metals commented, "I am pleased to provide
this positive update from the meeting. It is clear from the progress made at our
projects that GVM is rapidly progressing towards our goal of becoming a major
coal producer in South Africa."



For more information contact:

Simon Farrell, Managing Director                          GVM


                    +61 417 985 383

Nonkqubela Mazwai, Deputy Managing Director               GVM

                    +27 11 803 8247

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 6603                 +44(0) 7899 870 450





www.gvm.com.au





                                 TRADING UPDATE





MOOIPLAATS



Subject to satisfaction of various conditions as announced on 7 February 2007,
GVM has contracted to buy 70% of the shares in Coal of Africa Ltd ("CoAL") which
has the new order rights to various adjoining properties in the Ermelo district
of South Africa adjacent to the Camden Power Station.  Under the original
transaction, GVM was to acquire CoAL via the acquisition of Kelso Mining.  In
addition to the CoAL rights, Kelso Mining had a ferronickel project in the
Philippines, which subject to certain conditions was also to be acquired as part
of the transaction.  It became apparent that the complexity of the transaction
was jeopardizing settlement of the CoAL transaction. There was therefore
agreement amongst the parties that GVM deal directly with the original parties
and Kelso would be removed from the transaction on the basis it was reimbursed
its costs in relation to the original due diligence and legal costs up to a
maximum of GBP500,000 to be satisfied by the issue of GVM shares at 40p.



The result of the transaction is that the cost of acquiring the CoAL shares is
increased from the original price of GBP 30 million in cash and GBP 7 million in
shares at 30p per share by the reimbursement described above. A cash deposit of
GBP 3 million has already been paid. GBP 17 million of the cash component will
be paid 90 days after receipt of all necessary Government consents with the
remaining GBP 10 million to be paid 12 months after that date. The share
component will be made in two payments, GBP 3 million immediately and the
remaining balance on completion of all conditions precedent.



Following recent placements the Company has cash reserves in excess of GBP 25
million (AUD 60 million) and no debt other than working capital facilities for
the NiMag business.



Since the end of February 2007, an intensive drilling program involving up to 11
drill rigs has been working on the various Mooiplaats farms.  A summary of this
work is set out below:



                                     Inferred                 Measured



Total boreholes to date                89                       40

Total Metres drilled                  18,145

Samples submitted                     185                       83

Hardgrove Index & Grindability samples                          10



The drilling program at Mooiplaats was initiated with the task of defining an
inferred resource for the entire property. The program is being supervised by
SRK Consulting and approximately 7,000 Ha of the 20,000 Ha property has been
drilled following the guidelines established by the JORC and SAMMREC codes.



In order to bring that portion of the ore body closest to the Camden Power
Station into measured category, the drilling program was suspended and the rigs
began the infill drilling required to upgrade the status of the resource.



The aim of the program is to bring a minimum of 60 million tonnes into the
measured and indicated category.  Sixty million tonnes is the coal required for
ten years consumption at the adjacent Camden Power Station.  Once this infill
program is completed, mine planning can commence and the current negotiations
with contract mining companies finalised.  The inferred drilling will then
re-commence with approximately 250 further holes required to complete the
programme. Indicative quotes have been received on the basis of supplying
initially six million tonnes of domestic thermal coal annually.  The planned
second phase of development is to produce approximately two million tones of
anthracitic and export thermal coal.  To put the potential size of the mine into
perspective, Australia currently produces a total of 70 million tonnes
underground coal.



Owing to the transfer of rigs to accelerate the definition of a measured
resource and the results of the inferred drilling program to date, the
requirement of a 450 million tonne minimum JORC compliant resource under the
CoAL agreement has been waived, leaving the only conditions precedent remaining
being ministerial consent to the transfer and Competition Authority consent.
This is expected to take place in the next three months.



LIMPOPO COAL PROJECT (Tuli Coalfield)



In July 2007, the Company intends to release four of the eleven rigs drilling at
Mooiplaats and relocate them to the Limpopo project.  Work undertaken by Sphere/
Utah Mining in the 1980's, delineated an inferred resource of 352 million tonnes
(competent person report available at www.gvm.com.au).



Following the acquisition of adjoining properties, the intention is to expand
and upgrade the current resource status to indicated and/or measured.  This
program, incorporated with yet to be flown aero magnetic data, will form the
basis of a bankable feasibility study which is intended to commence before the
end of the year.



BAOBAB COAL PROJECT (Soutpansberg Coal Field)



Following completion of the Data Terrain Model, two rigs released from the
Holfontein infill drilling program are being transferred to the Baobab project.
These rigs will commence large diameter drilling on the Fripp and Tanga farms.
These farms were subject to a comprehensive drilling and testing program by
Iscor in the 1970's and 80's.  The intention of the program is to revalidate the
earlier work and bring the resources into JORC standard.









HOLFONTEIN



Poor performance by the drilling contractor has delayed finalising the in-fill
drilling at Holfontein until this week.  Initial results have confirmed that the
5 Seam should produce the required quality of coal for the metallurgical
industry.  The 4 Seam will also produce suitable quality coal for domestic
thermal consumption.



The Measured Resource and Geological Model is expected to be completed by the
end of June 2007 in time to feed into the Scoping Study and application for New
Order Mining Rights ("NOMR"). Consultants have been appointed to complete the
NOMR and the Environment Studies including the Environmental Impact Assessment
and Environmental Management Plan. In parallel with the NOMR applications, GVM
will complete a Definitive Feasibility Study including baseline capital and
operating cost estimates with an expected +/-10% accuracy.



Concurrently experienced contractors will be identified and selected for
alliance contracts for the outsourced Underground Mining and Coal Processing.
The open book, negotiated alliance type of contract has been selected in order
to optimise production, capital and operating costs focusing on safety, health
and environment performance.



NiMag



  * EBIT for the year to 30 June 2007 is expected to be in the range of Zar 42
    /45 million ($A7-8 million)



Buoyant trading conditions continue to improve this division's performance.
Expected EBIT for the year to 30/6/07 is expected to be in the range of Zar 42/
45 million ($A7-8 million) and the outlook for 2008 is for a modest further
improvement.  NiMag management continues to seek further similar businesses to
expand its metal alloys and fibres division.



NiMag, which was acquired for Zar 55 million some four years ago, has now repaid
all its acquisition debt and provides a most valuable contribution to the costs
of developing the coal business.








                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

RAGFFMJTMMBMBLR
Gvm Metals (LSE:GVM)
過去株価チャート
から 5 2024 まで 6 2024