Issue of Equity - replacement

RNS Number:9231F
GVM Metals Ltd
10 July 2006

The following replaces the Issue of Equity announcement released today at 10.10
am under RNS number 9222F.  The number of shares has been updated to 24,615,384.



                               GVM Metals Limited

                                Issue of Equity


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 is proposing #3,200,000 by a placing of 24,615,384 new ordinary shares in the
capital of the Company at a price of 13p (the "Placing Price") per Ordinary
Share (the "Placing Shares"), ("the Placing").  The Placing is conditional on
admission of the Placing Shares to trading on the Alternative Investment Market
of the London Stock Exchange ("AIM").



Background to and reasons for the Placing



On 30 May 2006, the Company announced that it had posted a circular to
shareholders convening an EGM to approve, amongst other items:



*              the allotment and issue of 20,812,500 Ordinary Shares at a deemed
issue price of A$0.25 each, to acquire a 74% interest in Limpopo Coal Company
(Proprietary) Limited; and



*              the allotment and issue of up to 40,000,000 Ordinary Shares
pursuant to a future fundraising by the Company in the 3 months following the
EGM.



All the resolutions of the EGM were passed on 28 June 2006.



In 2005 GVM acquired a 49% interest in the Holfontein coal project which is
located in the Witbank coal field in South Africa.  According to a Competent
Person, Dawie van Wyk, Holfontein contains an indicated resource of
approximately 56 million tonnes of steaming and metallurgical coal.



With good infrastructure in place and an anticipated 20 year mine life, GVM's
future strategy at Holfontein is to complete a bankable feasibility study with
its joint venture (B.E.E.) partner Motjoli Resources Pty Ltd.



In April 2006, the Company acquired a 74% interest in the Limpopo coal project
("Limpopo") located approximately 50km north of Rio Tinto's Chapudi Project in
northern South Africa.  According to a Competent Person, Gemecs (Pty) Limited,
Limpopo contains an inferred resource of approximately 352 million tonnes, again
containing both steaming and metallurgical coal.



The Company's strategy at Limpopo is to undertake a drilling programme to
validate original mining studies, to expand existing resources and to upgrade
resources to the measured category.



The Placing will provide the Company with additional working capital with which
to undertake the programs on Holfontein and Limpopo.  It is intended that the
proceeds of the Placing will be applied as follows:-



  * #800,000 - balance of consideration payable for the Holfontein coal
    project
  * #400,000 - share of Holfontein's JV costs to complete a drilling program
    and bankable feasibility study
  * #1,200,000 - share of Holfontein's JV costs for mine development
  * #400,000 - Limpopo drilling programme
  * #400,000 - general working capital and costs of the issue



Details of the Placing



The Company is proposing to raise #3,200,000 by the issue of the Placing Shares
at the Placing Price. Corporate Synergy Plc, as agent for the Company, has
agreed to use its reasonable endeavours to place the Placing Shares at the
Placing Price with institutional and other investors, subject to the Placing
Shares being admitted to trading on AIM. The Placing Price represents a discount
of 3.7 per cent to the closing mid market price of 13.5p on AIM as at 6 July
2006, the most practicable date immediately prior to the release of this
announcement.



The Placing Shares will, when issued and fully paid, rank pari passu in all
respects with the existing issued Ordinary Shares, and are expected to be
admitted to trading on AIM on 13 July 2006.




For more information contact:

Simon Farrell, Managing Director - GVM - +61 417 985 383

Leesa Peters / Abi Singleton - Conduit PR - +44(0) 20 7429 6606

Olly Cairns - Corporate Synergy Plc - +44(0) 20 7448 4400



                                 www.gvm.com.au


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

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