Kemin Resources Regulatory News (KEM)

15 Jul 2008 10:12



15 July 2008 AIM: GMA

GMA Resources Plc

Placing of 13,644,000 new ordinary shares to raise £0.95 million

GMA Resources Plc ("GMA" or "the Company") announces that, pursuant to a placing agreement entered into today with Mirabaud Securities Limited, it has conditionally raised £955,080 before expenses by way of a placing of 13,644,000 new ordinary shares of £0.01 each ("Placing Shares") at 7 pence per share ("Placing") which have been conditionally placed with existing shareholders. The Placing Shares will represent approximately 3.8 per cent of the enlarged issued share capital of the Company. 

The proceeds of the Placing will be used for general working capital purposes and utilises the Company's existing authority to issue new ordinary shares for cash. 

The Placing is conditional, inter alia, on the Placing Shares being admitted to trading on AIM, which is expected to occur on or around 21 July 2008. Following the Placing, the Company will have total of 368,062,493 ordinary shares in issue.

Douglas Perkins, CEO of GMA, commented:

"We are pleased to have been able to raise this money which has replaced cash which was expected from an exercise of warrants which lapsed in April 2008. We are sensitive to the current market conditions so we will deploy these funds carefully as we build up production to feasibility study levels over the next few months."

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 authorization 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 Resources 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