GVM boosts coffers

COAL company GVM Metals has raised over $100million via a share placement, with funds to go towards the acquisition and development costs of the Mooiplaats and Baobab coal projects.
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Courtesy of GVM Metals

Rebecca Lawson

The AIM-listed company said it had completed a conditional fundraising of ₤42.25 million ($A100.25 million) by placing 65 million new ordinary shares at 65 pence each.

The share placement is subject to approval by shareholders at the company's annual general meeting next week.

The South Africa-focused company said following approval of the placement, application will be made for the new shares to be admitted to trading on AIM, the Australian Securities Exchange and the Johannesburg Stock Exchange.

The new shares will represent some 23% of the enlarged share capital.

"Proceeds of the transaction will be utilised in accelerating GVM's projects over the next 18 months in order to position the company as a significant coal producer in South Africa," managing director Simon Farrell said.