Kemin Resources Regulatory News (KEM)

31 Oct 2005 09:49

GMA Resources PLC31 October 2005 GMA Resources Plc ("GMA" or "The Company") 31 October 2005 Conditional Placing The Board has today announced that the Company is raising approximately£8,600,000 (net of expenses) by way of a placing of 127,252,971 new OrdinaryShares at 7 pence per share ("Placing") which have been conditionally placedwith institutions and other investors. Background to the Placing The Company has recently announced the completion of the Amesmessa Gold ProjectFeasibility Study (the "Study"). The Study confirmed the technical andcommercial viability of a new processing plant at Amesmessa, and several opencut mines at both Amesmessa and Tirek. The Study was completed by GRD MinprocLtd and their subcontractor, RSG Global Pty Ltd ("RSGG"), the latter beingresponsible for the geological modeling and mine planning. The Study considered a new 300,000 tonne per annum processing plant atAmesmessa, and several large open pit mines at both Amesmessa (veins 8 and 9)and Tirek (veins II/III and XIV/XV). This formed the base case in the Study andwas limited to the major vein sets at Amesmessa and Tirek that have beenestimated to Australian JORC standards by RSGG. In addition, the Companyinitiated resource modelling and mine planning on nine other near surface, veinsat Amesmessa and two minor veins at Tirek which formed the basis of thedevelopment case in the Study and which the Board has concluded represents areasonable assessment of the potential of the Amesmessa Gold Project. The Company holds a 52 per cent interest in Entreprise d'Exploitation des Minesd'Or ("ENOR"), the owner of the Tirek-Amesmessa Gold Project. The Company hasestimated that the total cost of implementing the development case will amountto approximately US$28.5 million (excluding mining fleet), of which it isintended that US$14.8 million will be contributed by GMA by way of a furtherequity subscription in ENOR with the balance being contributed by the othershareholders of ENOR. It is intended that the Placing will provide GMA with theresources to fund its further equity subscription in ENOR. Details of the Placing and use of Proceeds The Company has undertaken the Placing to enable the Company to finance itsshare of the development costs referred to above. The Placing is conditional,inter alia, upon shareholder approval at an extraordinary general meeting to beheld on 23 November 2005. The 127,252,971 new Ordinary Shares being placed("Placing Shares") will represent approximately 49 per cent of the Company'senlarged issued share capital. Director's options and take-up under the placing In connection with his appointment as chief executive officer of the Company,Douglas Perkins has been granted options to subscribe for up to 1,200,000Ordinary Shares on the following basis: an option to subscribe for up to 600,000Ordinary Shares at the Placing Price; and an option to subscribe for a further600,000 Ordinary Shares at a price of 10.5 pence per Ordinary Share. The optionsmay be exercised no earlier than 30 April 2006 and have a final exercise date of28 October 2010. Colin Ikin's spouse has agreed to subscribe for 7,150,000 Placing Sharespursuant to the Placing and Douglas Perkins has agreed to subscribe for 300,000Placing Shares pursuant to the Placing. Immediately following the Placing, Colin Ikin will be interested in 22,831,853Ordinary Shares, representing 8.75 per cent of the Company's issued sharecapital and Douglas Perkins will be interested in 300,000 Ordinary Shares,representing 0.11 per cent of the Company's issued share capital. The Directors (excluding Colin Ikin and Douglas Perkins) consider, havingconsulted with its Nominated Adviser, that the terms of the placing to ColinIkin and Douglas Perkins are fair and reasonable insofar as Shareholders areconcerned. Circular and notice of EGM A circular setting out details of the Placing has been posted to Shareholderstoday. Copies of the circular will be available free of charge during normalbusiness hours on weekdays (excluding public holidays) from the date hereofuntil 30 November 2005 from the offices of Field Fisher Waterhouse, 35 VineStreet, London EC3N 2AA. Richard Linnell GMA Resources plc Tel: +61 8 9226 1885 Philip Secrett Grant Thornton Corporate Finance Tel: +44 (0) 870 991 2578 This information is provided by RNS The company news service from the London Stock Exchange