Kemin Resources Regulatory News (KEM)

6 Apr 2009 14:00

6 April 2009 AIM: GMA

GMA Resources Plc

Issue and conversion of convertible loan stock

GMA Resources Plc ("GMA" or "the Company") announces that it has today issued £310,000 nominal of fixed rate unsecured convertible loan stock 2011 ("Loan Stock 2011").

The Company constituted £1,500,000 nominal of Loan Stock 2011 pursuant to an instrument by way of deed poll executed on 29 December 2008 and an aggregate of £1,190,000 nominal of Loan Stock 2011 was placed with investors pursuant to a placing announced on that date. The Company has now issued the remaining Loan Stock 2011 to existing shareholders of the Company.

The Company also announces that it has received conversion notices in respect the Loan Stock 2011 issued today. Under the terms of the instrument, holders of Loan Stock 2011 have the right at any time to convert their Loan Stock 2011 into new ordinary shares in the capital of the Company ("Conversion Shares") at an effective conversion price of 2.25 pence per ordinary share. Until the remaining £1,190,000 nominal of Loan Stock 2011 has been repaid or converted the Company, is required to pay holders of Loan Stock 2011 interest on 30 June and 31 December each year in respect of the previous six month period. Interest is calculated at a rate of 15 per cent. per annum on the principal amount of the Loan Stock 2011 then in issue. 

The Conversion Shares will rank pari passu in all respects with the Company's existing ordinary shares. Application has been made for 13,777,777 Conversion Shares to be admitted to trading on AIM ("Admission"), which is expected to take place on 14 April 2009. Following Admission, there will be a total of 392,366,270 ordinary shares in issue.

Enquiries:

Notes to Editors:

GMA owns a controlling 52% stake in ENOR spa ("ENOR"), the Algerian based operating company for the Tirek-Amesmessa project, with the remainder owned by Sonatrach, the Algerian state-owned oil and gas company.

ENOR holds the exploitation authorisation to the Tirek-Amesmessa property, an area of some 1,417 km2, located approximately 450km south west of the city, Tamanrasset, in southern Algeria. Amesmessa is an open pit heap leach gold mine located in the extreme south of the permit area. The Tirek gold mine is located centrally in the northern third of the exploration permit area, some 60 km north of Amesmessa. Research to date suggests that the Zita Zone, which lies between Tirek and Amesmessa, offers considerable potential for the development of additional prospects amenable to open-pit mining. GMA plans to quickly expand upon resources outside of the major 80km Tirek-Amesmessa fault north/south of the concession.

GMA's shares are traded on the AIM market of the London Stock Exchange (AIM: GMA). 

For further information on the Company, please visit: www.gmaresources.co.uk