AIM newcomer GVM Metals says it will seek new funds if it proceeds with South Africa's Holfontein coal project.

Introduced onto AIM today by nominated adviser and broker Beaumont Cornish, Aussie-quoted GVM, which made £635,000 pre-tax on £13 million revenues in its last financial year, began trading at 11p. Chaired by senior South African metals and mining veteran Richard Linnell with experienced exploration and extraction expert Simon Farrell as managing director, GVM has 49 per cent of Holfontein, which contains an estimated resource of 56 million tonnes of coal.

The company says that, if current feasibility studies confirm the presence of more than eight million tonnes of economically recoverable coking coal and there are no outstanding environmental problems, it will decide whether to develop Holfontein or sell its share. Arguing South Africa's increasing power demands augur well for coal prices there, Farrell says GVM will seek funding jointly with its 'black empowerment' partner the Motjoli group, if it decides to develop the project itself.

The other string to GVM's bow is a 74 per cent stake in NiMag, a company that produces specialist nickel magnesium and ferro magnesium alloys, used in mining, civil engineering and refractories. GVM has an option to take its interest in NiMag, which boasts a 40 per cent world market share in these mature markets, to 100 per cent.

Linnell and Farrell say they are out to grow the company both organically and by acquisition. It could be worth a flutter for the strong-nerved.