GMA Resources says share price movement a mystery

GMA Resources, the Algeria-focused mining firm, has released a statement about yesterday's share price movement, saying it knows of no reason why the share price jumped.

The share price jumped from 0.18p (closing price on Monday) to 0.42p last night, a 133% increase. Shares pulled back today, falling 26.19% to 0.31p in early trading.

In a statement the company said: "Further to the announcements issued on 6 and 9 January 2012, little further progress has been made regarding the disposal of Enterprise d'Exploitation des Mines d'Or and completion is not expected in the near future."

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The firm also said it currently has 618,002,894 ordinary shares in issue and there is, in total, about £5.5m of unsecured convertible loan stock which, together with accrued interest, is repayable in full on 31 December 2012, if not converted before that date.

Conversion is at the option of the holder at any time prior to December 31st 2012. The conversion price on the loan notes is between 2.25p and 5p.

NR