GVM Gvm Metals

RNS Number:7326V
GVM Metals Ltd
16 December 2005


16th December 2005

                               GVM Metals Limited
                          Admission to Trading on AIM

   *30 June 2005 annual revenues AUS$31m; Profit before tax AUS$1.5m

   *NiMag business manufactures nickel magnesium and other alloys

   *Holfontein coal mining project in South Africa scoping study shortly to
    be announced

   *Dual listing as quoted on the Australian Stock Exchange

GVM Metals Limited ("GVM" or "the Company" ticker "gvm"), the South African
mineral processing and coal mining company today announces the commencement of
trading on AIM after an Introduction by the Company's Nominated Adviser and
Broker Beaumont Cornish Limited. The Company is already quoted on the Australian
Stock Exchange.

GVM has a 49% interest in 'Holfontein' a coal mining project containing an in
situ resource of 56 million tonnes coal in South Africa. Feasibility and scoping
studies are underway to determine the economics of this project. Subject to the
studies showing that the project contains more than 8 million tonnes of
economically recoverable coking coal and there being no outstanding
environmental matters, the Company will then decide whether to sell or develop
the project.

If the decision is taken to develop the project, the Company will need to raise
the additional funds to meet its obligations under the acquisition agreement.
Under the new order prospecting rights, the Company has already appointed a BEE
partner- Motjoli. Funding and payment obligations for the project will be the
joint responsibility of GVM and Motjoli.

The Company's other principal asset is a 74% (with an option to increase to
100%) interest in NiMag, a producer of specialist nickel magnesium and ferro
magnesium alloys, which is used in the mining, civil engineering and refractory
industries. NiMag currently supplies approximately 40% of world demand for these
products in what is a mature market. The Company's September 2005 quarterly
report highlighted that the net operating cash flow for the quarter was
AUS$1.06m with the NiMag business operating slightly better than budgeted.

Commenting today, Simon Farrell, Managing Director GVM Metals said:

"GVM plans to find and acquire suitable additional assets within the coal mining
sector as we believe the outlook for coal in South Africa looks bright due to
increasing power demands and the country's switch from being a coking coal
exporter to an importer."

                             http://www.gvm.com.au/

GVM Metals Limited            Simon Farrell + 61 8 9322 6776

Beaumont Cornish Limited,     Roland Cornish/Noelle Greenaway
Nominated Adviser and         Tel: +44 (0) 207 628 3396
Broker

Conduit PR                    Leesa Peters / Abigail Singleton
                              Direct: + 44(0) 20 7429 6600/ 6606
                              Mobiles: 0781 215 9885 / 07739 461 061
                              Emails: leesa@conduitpr.com /
                              abigail@conduitpr.com

                                Notes to Editors
South Africa

South Africa is the Company's principle area of expansion for mining and
minerals processing assets as illustrated by the recent acquisitions of NiMag
and the JV in the Holfontein project. Traditionally, South Africa has been a
major producer and exporter of coal. The vast bulk of this coal has been sourced
from the Witbank coalfields which are now in their mature phase. Recent
developments in the demand for coal have concentrated expansion efforts towards
the relatively underdeveloped northern coalfields, an area of great interest to
GVM. Domestic demand for coking coal is also growing rapidly as a result of
expanding steel production in the face of contracting local supply

NiMag

GVM has a 74% interest in NiMag which produces a range of metal alloys and
fibres. The alloys are principally used in improving the technical
characteristics of cast iron and also in exotic metals used in the aeronautical
industry. The Company can increase this interest to 100%

Holfontein

As a result of increasing power demands in Southern Africa and the switch in
South Africa from being a coking coal exporter to importer, it was felt by the
Company that it should examine local opportunities. In April 2005 GVM acquired a
49% interest in a small coal mining project called 'Holfontein'. The Holfontein
Coal project is a mineable coal deposit consisting of two mineable coal seams,
the No 5 seam, which is a coking coal, and the No 4 Seam, which is a low-grade
steam coal. The recent scoping study confirms the value of the Holfontein
property.

It is believed the market value of the project will comfortably exceed its cost
and thus the decision will have to be made whether to sell or develop the
project. A scoping study is nearing completion and the Company believes its
outcome is better than originally expected.

Future expansion and acquisitions

The Directors intend to grow the Company both organically and by acquisition
especially in the coal mining sector. Largely through Chairman Richard Linnell's
connections, several substantial coal properties have been identified and
negotiations have commenced regarding GVM's participation.

Management

Chairman - Richard Linnell

Richard is a geologist with over thirty years of experience. Linnell's early
experience includes involvement in the establishment of the Delta Manganese.
Project (now Manganese Metal Company) and the Murray & Roberts Industrial
Corporation. Linnell was additionally marketing manager for the Stainless Steel
division of Middelburg Steel & Alloys and general manager of the Manganese
Divison of Samancor, a joint venture between Billiton Plc and the Anglo American
Corporation. Linnell was accountable for all of Biliton's exploration and
development activities in South Africa and was an originator of the Bakubung
Initiative, a forum designed to revive the South African mining industry which
in turn led to the establishment if the Eskom Council.

Managing Director - Simon Farrell

Simon has a 20 year record that includes a number of relevant management and
board level positions in the resources sector. During his career Farrell has
overseen the successful exploration and extraction projects in many countries
including, Australia, South Africa, Papua New Guinea, Algeria and Mozambique.
His experience comprises knowledge of markets in metals, ores, diamonds and gold
in which Farrell has established relationships with distributors and traders the
world over. As architect of the restructure of GVM, Farrell has relocated to
South Africa to both oversee NiMag operations and advance further opportunities
in the region.

CEO of NiMag - Trevor Sinclair

Trevor has been involved in NiMag for 10 years and has extensive experience in
the metals trading industry. Sinclair has established contacts within the South
African metals trading industry in particular establishing the strong
relationships with the distributor chain that are essential to the continued
development of the Metals business. In order to ensure continuity in these
matters, Sinclair will remain as CEO of NiMag reporting directly to MD Simon
Farrell.

                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
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