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21 May 2008 08:43
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21Β MayΒ 2008
PRESS RELEASEΒ
GCM Resources plc
GCMΒ RESOURCES PLC ACQUIRESΒ 13% INΒ AURAΒ ENERGY LIMITED
GCM Resources plcΒ ('GCM or the Company')Β (AIM: GCM), is pleased to announce that it hasΒ subscribed forΒ 5,586,975 shares, representingΒ 13% of theΒ enlargedΒ share capital ofΒ Aura Energy Limited ('Aura') (ASX: AEE),Β atΒ A$0.29 a share. The total cost isΒ A$1.62Β millionΒ (Β£790 thousand).
Aura is a uranium exploration company based inΒ Perth,Β Western AustraliaΒ which was listed on the Australian Stock Exchange in May 2006. Aura has a portfolio of exploration titles which are being actively explored for calcrete-, shale-Β and sandstone-hosted uranium deposits.
The proceedsΒ of the subscriptionΒ will beΒ utilisedΒ in the drilling and analysis work programme for Aura'sΒ SwedishΒ propertiesΒ plus the calcrete uranium projects inΒ Western Australia. The other areas'Β workΒ programmesΒ are fully funded from internal funds or JV partners.
The Aura / GCMΒ AfricaΒ Alliance hasΒ alreadyΒ been actively pursuing opportunities inΒ MauritaniaΒ andΒ Niger. TheΒ AllianceΒ now holds 3 granted licencesΒ for uranium explorationΒ and has a further 11 applicationsΒ for licencesΒ inΒ Mauritania, plus 3 applications forΒ licences pending inΒ Niger.
GCM's involvement adds mining and technical expertiseΒ to the AuraΒ exploration expertise to take the prospects forward to feasibility study and ultimately development.Β Β The West Africa Alliance has proven Aura isΒ capable of securing exploration tenements and working within agreed budgets.Β
Steve Bywater, GCM's Chief ExecutiveΒ commented:Β
"GCMΒ isΒ pleased to announceΒ this investment in Aura. These funds will help Aura toΒ develop its mineralized properties inΒ SwedenΒ through further drillingΒ plus continue its explorationΒ programmeΒ withΒ the calcrete uranium projects inΒ Western Australia.Β This is an exciting opportunity forΒ GCMΒ as it looks to expand its portfolio of investments on a global basis."
Aura's Managing Director, Dr Bob Beeson, saidΒ
"These funds will enable Aura to continue its aggressive explorationΒ programmesΒ at its 100% owned uranium projects. These include the shale-hosted uranium provinceΒ and high grade vein systemsΒ inΒ SwedenΒ plus the calcrete uranium projects inΒ Western Australia. Aura has been particularly active in the past 12 months, with substantial activities on three continents. The Aura/GCMΒ AllianceΒ announced itΒ hasΒ located uranium mineralization in its newly awardedΒ licencesΒ inΒ Mauritania,Β onΒ 7 May 2008."
Aura / GCM African UraniumΒ Alliance:
On behalf of its Uranium Alliance with GCM, Aura has been actively developing high quality uranium exploration targets inΒ West AfricaΒ since April 2007. TheΒ AllianceΒ brings together the technical uranium experience, targeting and exploration skills of Aura with the project development and mining experience of GCM. TheΒ AllianceΒ is managed and explorationΒ conducted by Aura with funding provided jointly by Aura and GCM in cash and in kind. New project specific joint ventures between Aura and GCM will be established for theseΒ licencesΒ under which GCM will initially solely fund exploration, with Aura retaining the right to participate at 30% (or, at Aura's election, lower) interest.
Aura Energy Limited is an ASX listed uranium exploration company, very active in evaluating uranium occurrences inΒ Sweden, theΒ YilgarnΒ ProvinceΒ andΒ GunbarrelΒ BasinΒ inΒ Western Australia, as well as inΒ WestΒ Africa.
GCM Resources plc is aΒ LondonΒ based company quoted on the London Stock Exchange's Alternative Investment Market ("AIM"). The Company is strategically focused on coal and related investments across a range of geographical locations including: South Africa, Bangladesh and China with the aim of sourcing potential opportunities that offer near return whilst mitigating risk through the development of a diverse portfolio of assets. Primarily focused on the exploration and development of coal deposits the Company also targets related infrastructure such as power plants and telecommunications networks to build on related areas of the coal mining industry and support local development.
For Further Information:
JP Morgan CazenoveΒ
Nominated Advisor
Michael Wentworth-Stanley
Ph: +44 (0)207 588 2828
Charlotte Keenan
Ph: +44 (0)207 588 2828
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