GVM plans to place about 24,615,384 new ordinary shares in the capital of the company at a price of 13p per ordinary share.

In 2005, GVM acquired a 49% interest in the Holfontein coal project, located in the Witbank coal field in South Africa. Holfontein contains an indicated resource of about 56 million tonnes of both 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 partner, Motjoli Resources.

Earlier this year, GVM acquired a 74% interest in the Limpopo coal project

located about 50km north of Rio Tinto’s Chapudi Project in northern South Africa. Limpopo contains an inferred resource of about 352Mt of steaming and metallurgical coal.

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

The placing is conditional on admission of the placing shares to trading on the Alternative Investment Market of the London Stock Exchange.