Kemin Resources Regulatory News (KEM)

31 Jan 2007 07:02

GMA Resources PLC31 January 2007 31 January 2007 AIM: GMA GMA Resources Plc ("GMA" or "the Company") Placing GMA Resources Plc announces that it has raised approximately £4.1 million beforeexpenses by way of a placing of 37,273,000 new ordinary shares of £0.01 each at11 pence per share ("Placing") which have been conditionally placed withinstitutional shareholders through Mirabaud Securities. The new ordinary shareswill represent 11% of the enlarged issued share capital of the Company. Theplacing is conditional, inter alia, on the new ordinary shares being admitted totrading on AIM, which is expected to occur on or around 5 February 2007. Use of Proceeds The proceeds of the Placing will be used to finance the final costs of the mineconstruction at the Amessmessa gold deposit in Algeria. There have been delaysin the processing of payments from ENOR Spa ("ENOR"), the Algerian operatingcompany for the Tirek-Amesmessa mine in which GMA holds a 52% stake, tosuppliers. As such, it is intended that GMA will pay the suppliers directly soas not to impede upon the construction schedule. Following completion of theconstruction process GMA will then be able to recover the monies from ENOR. The Directors believe that the Company's focus should be to achieve commercialproduction at its second mine as quickly as possible. Following the completionof the Tirek-Amesmessa mine and repayment of the construction costs, GMA willseek to expand its asset base through a focused acquisition search of assets tocompliment its current portfolio. Douglas Perkins, CEO of GMA, commented: "This is essentially a bridge financing which will enable us to move quickly tocomplete the construction of the new mine at Amesmessa. We believe that thisapproach is in shareholders' best interests as it will serve to bring us closerto commercial production at our second mine in the quickest time framepossible." Enquiries: GMA Resources PlcDouglas Perkins - Chief Executive OfficerTel: +44 (0) 20 7253 7670Mobile: +1 514 806 6788 Philip Secrett/Fiona OwenGrant Thornton Corporate FinanceTel: +44 (0) 20 7383 5100 Cathy Malins/Annabel LeatherParkgreen CommunicationsTel: +44 (0) 20 7851 7480 This information is provided by RNS The company news service from the London Stock Exchange