Australian-listed GVM’s shares closed at 34c just before Easter and at the resumption of trading jumped to 44c on Tuesday and 50c on Wednesday. Midday on Thursday the company was trading down slightly at 47c.
The company said it was in negotiations to buy an additional coal property in South Africa. It already has a 49% interest in the Holfontein coal project in the country.
Last month, the company – along with its Black Economic Empowerment partner Motjoli – was granted the prospecting rights for the Holfontein resource.
According to GVM's scoping study released in December last year, the project contains an indicated gross in situ resource of 56 million tonnes and 22 million saleable tonnes. The study also suggested a total project value of $A40 million.
The Holfontein project in South Africa's Witbank coal field consists of two mineable coal seams that contain coking coal and low grade steam coal. GVM said the project would have access to good infrastructure, including rail, road and electricity.
