GVM raises $6.2 million in placement

West Perth's GVM Metals Ltd will raise $6.2 million through a placement of 8.3 million shares to London investors, raising funds for its acquisition of 50 per cent of the Baobab coal mining joint venture.

The full text of a company announcement is pasted below

We are pleased to advise that the Company has agreed to make a further placement of 8,333,333 shares at 30p to raise 2.5 million pounds.

The placement will be made to certain sophisticated and professional London based investors and the funds raised will be applied towards the acquisition of 50% of the Baoabab JV, as announced on 20 December 2006.

The placement falls outside the Company's capacity under Listing Rule 7.1 and therefore is subject to shareholder approval.

Accordingly, the Company will shortly lodge a Notice of Meeting seeking shareholder approval for the above mentioned placement.