West Perth-based coal mining company GVM Metals Ltd will raise around $6.1 million through a placement to London-based coal miner Asia Energy plc, almost the total cost of buying out its South African coal mining joint venture partner.
West Perth-based coal mining company GVM Metals Ltd will raise around $6.1 million through a placement to London-based coal miner Asia Energy plc, almost the total cost of buying out its South African coal mining joint venture partner.
GVM announced yesterday that it would buy the remaining 50 per cent stake in Baobab Mining and Exploration Pty Ltd held by another takeover target, Motjoli Resources, for $6.2 million.
The company said in an announcement that the funds would be used to expand the company's coal interests in South Africa.
GVM has also invited Asia Energy chief executive Steve Bywater and chief financial officer Graham Taggart, to join the board as non-executive directors.
The full text of a company announcement is pasted below
GVM Metals Ltd is pleased to announce that it has placed 12.2 million new ordinary shares at a price of 20 pence per share (AUD 0.50) to Asia Energy plc to raise a total of GBP 2,440,000 (AUD 6,100,000).
GVM has invited Steve Bywater and Graham Taggart, Asia Energy's CEO and CFO respectively to join the GVM Board as non-executive directors.
The funds will be utilized in developing GVM's expanding coal interests in South Africa.
Simon Farrell, Managing Director of the Company said:
"We are delighted to work with Asia Energy bringing our diverse coal interests into production. Steve Bywater and Graham Taggart bring enormous experience in operating world class coal and iron ore mines and I look forward to their help in what is going to be a
very exciting and challenging period of the company's growth".
Steve Bywater Chief Executive of the Asia Energy plc said:
"This is an exciting opportunity for Asia Energy as it looks to expand its portfolio of investments in coal on a global basis. This transaction provides a platform for Asia Energy plc to be involved in new and developing coal projects with GVM."
Steve Bywater has a distinguished career in the resources industry, developing and operating a total of 14 large-scale open pit mining operations. Before joining Asia Energy in January 2006, he was Chief Operating Officer for Rio Tinto Coal Australia. In this position Steve oversaw seven mining operations, producing 60 million tonnes of saleable coal a year.
He was previously General Manager Operations for Robe River Mining, a subsidiary of North which subsequently became a subsidiary of Rio Tinto in 2000. He was also General Manager, Mine Operations, for Hamersley Iron Limited and General Manager at Mount Isa Mines in both Mining and Metallurgical Operations. His position at Robe River Mining included management of both the port and rail facilities.
Born in Britain and now an Australian, Steve has a B.Sc. in Engineering Geology and Geotechnics from Portsmouth University and a M.Sc. in Rock Mechanics and Excavation Engineering from Newcastle-upon-Tyne University. He is a Fellow of both the AUSIMM
(Australasian Institute of Mining and Metallurgy) and the AIM (Australian Institute of Management).
Graham Taggart, an Australian, is a qualified Chartered Accountant with 25 years experience in the resources industry with Rio Tinto. Prior to joining Asia Energy plc, Graham was Chief Financial Officer and Company Secretary for Rio Tinto Coal Australia, where he was responsible for a group producing some 60 million tonnes per annum of thermal and coking coal. He was previously General Manager Commercial and Chief Financial Officer for PT Kaltim Prima Coal (producing some 20 million tonnes of thermal coal per annum), and before that he was Director Finance for PT Kelian Equatorial Mining (producing some 500,000 oz of gold per annum), both Indonesian based.
Asia Energy plc is a London based company quoted on the London Stock Exchange's Alternative Investment Market under the code AEN. The Company's primary activity is the development of the Phulbari Coal Project in Northwest Bangladesh into a world class open pit mine. The mine will have a life of more than 30 years and at full capacity will produce 15 million tonnes a year of mostly export quality metallurgical and thermal coal.
The Company will lodge under separate cover an "Appendix 3B - New Issue Announcement" in relation to the shares issued to Asia Energy plc and an accompanying cleansing statement under section 708 of the Corporations Act.
