GVM Gvm Metals

RNS Number:9985N
GVM Metals Ltd
15 December 2006


                               GVM Metals Limited


ACQUISITION OF FURTHER COAL INTERESTS IN SOUTH AFRICA

GVM Metals Limited ("GVM" or the "Company"), the Australian mineral processing
and coal mining company with assets in South Africa, is pleased to announce that
it has executed a binding Sale of Shares and Claims Agreement to acquire 100% of
the issued capital of Boabab Mining and Exploration (Proprietary) Limited 
("BME"), a wholly owned subsidiary of Petmin Limited.  BME owns 50% of the 
Boabab J.V. coal project, the remaining 50% is currently held by Motjoli 
Resources, which GVM has already agreed to acquire as announced on 22 August 
2006.


Completion of both transactions will take GVM's interest in the Boabab Coal
Project to 100%.


The consideration payable to acquire BME is #2.5 million in cash, payable upon
the fulfillment or waiver of the following suspensive conditions:


 1. GVM obtaining shareholder approval at a general meeting of shareholders of
    GVM to be convened to be held during or before 30 March 2007;


 2. obtaining the requisite approvals of the Exchange Control Department of the
    South African Reserve Bank as are applicable; and


 3. obtaining the necessary approvals in terms of section 11 of the Mineral and
    Petroleum Resources Development ("MPRD") Bill of South Africa by 30 April
    2007.


Boabab Coal Project


The Boabab Coal Project consists of granted prospecting rights over sixteen
farms in the Soutpansberg/Mopane coal fields located within the Limpopo Province
in the north of South Africa.  These farms intermingle with or adjoin farms held
by Rio Tinto as part of their Chapudi Project.  The total area of these farms is
in excess of 23,000 Hectares, bringing GVM's total interests in the Limpopo
coalfields to approximately 32,000 Hectares.


The Soutpansberg/Mopane Coalfield was extensively prospected by Iscor / Kumba
and others up until the early 1990's.  Based on open file reports available at
the South African Council for Geoscience, the Company is confident that with
further exploration resources on the farm could be greater than the 350 million
tonne inferred resource at Limpopo stated in the Competent Persons Report, also
on the Company's website.


On Cavan, one of the farms acquired, the open file reports disclose one coal
seam that averages 22 metres in thickness, substantial coal tonnages and that
the coal in the region is stated as having a sulphur content of between 0.96%
and 1.2% and the ash content as between 10% and 12%.  An immediate task for the
Company is to update these reports and bring them into JORC compliance.


Contacts:

Simon Farrell - GVM Metals

+ 61 417 985 383


Olly Cairns- Corporate Synergy

+44 (0) 20 7448 4400


Leesa Peters / Abby Singleton- Conduit PR

+44 (0) 20 7429 6600 /6606

                                 www.gvm.com.au


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