Last checked at 21 May 2008 08:43
21 May 2008
PRESS RELEASE
GCM Resources plc
GCM RESOURCES PLC ACQUIRES 13% IN AURA ENERGY LIMITED
GCM Resources plc ('GCM or the Company') (AIM: GCM), is pleased to announce that it has subscribed for 5,586,975 shares, representing 13% of the enlarged share capital of Aura Energy Limited ('Aura') (ASX: AEE), at A$0.29 a share. The total cost is A$1.62 million (£790 thousand).
Aura is a uranium exploration company based in Perth, Western Australia 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- and sandstone-hosted uranium deposits.
The proceeds of the subscription will be utilised in the drilling and analysis work programme for Aura's Swedish properties plus the calcrete uranium projects in Western Australia. The other areas' work programmes are fully funded from internal funds or JV partners.
The Aura / GCM Africa Alliance has already been actively pursuing opportunities in Mauritania and Niger. The Alliance now holds 3 granted licences for uranium exploration and has a further 11 applications for licences in Mauritania, plus 3 applications for licences pending in Niger.
GCM's involvement adds mining and technical expertise to the Aura exploration expertise to take the prospects forward to feasibility study and ultimately development. The West Africa Alliance has proven Aura is capable of securing exploration tenements and working within agreed budgets.
Steve Bywater, GCM's Chief Executive commented:
"GCM is pleased to announce this investment in Aura. These funds will help Aura to develop its mineralized properties in Sweden through further drilling plus continue its exploration programme with the calcrete uranium projects in Western Australia. This is an exciting opportunity for GCM as it looks to expand its portfolio of investments on a global basis."
Aura's Managing Director, Dr Bob Beeson, said
"These funds will enable Aura to continue its aggressive exploration programmes at its 100% owned uranium projects. These include the shale-hosted uranium province and high grade vein systems in Sweden plus the calcrete uranium projects in Western Australia. Aura has been particularly active in the past 12 months, with substantial activities on three continents. The Aura/GCM Alliance announced it has located uranium mineralization in its newly awarded licences in Mauritania, on 7 May 2008."
Aura / GCM African Uranium Alliance:
On behalf of its Uranium Alliance with GCM, Aura has been actively developing high quality uranium exploration targets in West Africa since April 2007. The Alliance brings together the technical uranium experience, targeting and exploration skills of Aura with the project development and mining experience of GCM. The Alliance is managed and exploration 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 these licences 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 in Sweden, the Yilgarn Province and Gunbarrel Basin in Western Australia, as well as in West Africa.
GCM Resources plc is a London 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 Cazenove
Nominated Advisor
Michael Wentworth-Stanley
Ph: +44 (0)207 588 2828
Charlotte Keenan
Ph: +44 (0)207 588 2828