South African coal play GVM Metals has accompanied another £11.25 million funding with an encouraging update on its projects.

AIM star GVM, based in Western Australia and chaired by entrepreneur Richard Linnell, has raised $22.5 million (£11.25 million) at $1.50 and follows last week's £42.25 million placing to European institutions at 65p. The money raised will go to develop the company's Mooiplats and Baobab coal projects and fund further exploration, as well as providing working capital and came at more than twice the 34p at which GVM raised £13.7 million in April to buy Kelso Resources, with assets in Africa and Asia.

Managing director Simon Farrell has cheered followers with an initial geological evaluation of the Tanga and Fripp properties within the company's Baobab project in the Soutpansberg coal field. This shows measured resources of 39.7 million tonnes, all open-cast mineable, and suggests indicated resources of 44 million tonnes, inferred resources of 236 million tonnes and 'reconnaissance' resources of 366.4 million tonnes, for a grand potential total of 713.1 million tonnes, with 156.4 million tonnes potentially appropriate for open-cast mining.

Consultant SRK has also provided GVM with a 'competent person's' report giving an interim coal resource and reserve estimate of 25.7 million tonnes at the company's Mooiplats project, 48.8 million tonnes at Klipbank and 28.8 million tonnes at Adrianople. GVM is also working on a number of other projects at different stages.

Recommended by Growth Company Investor at 14p in early 2006 and again at 39.5p two months ago, GVM shares have now hit 70p, up 1p this morning and valuing the company at £152 million.

Partial profit taking might be prudent, though more action could be on the cards at some point.

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New funding by GVM			28/11/2007
South African cheer for GVM			10/09/2007