Bombed-out Asia Energy has put £2.4 million into coal play GVM Metals for a 15 per cent stake.

GVM, chaired by entrepreneur Richard Linnell and run by managing director Simon Farrell, has issued 12 million new shares to fellow AIM counter Asia Energy at 20p, nearly twice its September low and well up on the 13p at which the company last raised money in July and the 14p at which Growth Company Investor highlighted the shares a year ago. Farrell says GVM will use the money to develop its coal interests in South Africa, including 49 per cent of the Holfontein project and 74 per cent of Limpopo Coal.

For entrepreneurially run Asia, buying into GVM represents a move to diversify following violent local opposition to the company’s flagship Phulbari coal project in Bangladesh. This problem has toppled Asia’s shares from a £9 high in March 2005 to less than 90p now.

GVM shares were unchanged at 19.5p this morning and look worth holding for now. Asia, up 2p to 97.5p, may have enhanced its speculative long-term recovery potential.