REG - GCM Resources PLC - Extension of PowerChina Joint Venture Agreements

GCM ResourcesAnnouncement

11/03/2022 15:15

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RNS Number : 5488E  GCM Resources PLC  11 March 2022

11 March 2022

GCM Resources plc

("GCM" or the "Company")

 

Extension of Joint Venture Agreements with PowerChina

 

 

GCM Resources plc (LON:GCM), an AIM quoted mining and energy company, is
pleased to announce that further to the announcement of 19 January 2021, it
has completed the extension of the joint venture agreements announced on 17
January 2019 and 13 January 2020 ("First JV Agreement") and 15 March 2019
("Second JV Agreement") with Power Construction Corporation of China
("PowerChina"). The joint venture agreements which were both due to expire on
15 March 2021 have both been extend for a further two years to 15 March 2024.

GCM and PowerChina ("the Parties") foresee the Phulbari geological basin being
transformed into an "Energy Park", potentially supplying large scale solar
power, thermal power and high-energy thermal and metallurgical coal to
Bangladesh's domestic markets.

The Parties back in November 2021 entered into an MOU aimed at negotiating a
mutually agreed business relationship to partner each other in developing the
proposed coal mine. The Parties now reinforce their belief that the
High-Efficiency, Low-Emissions Coal-Fired Power Generation planned under these
Joint Venture Agreements remain an attractive option available to the
Bangladesh Government.  An 'Energy Park" at Phulbari would provide a high
level of energy and power security for the Country as it continues to develop
its economy and at the same time moves towards "Net Zero Emission" targets
over the moving decades.

The CEO of GCM, Datuk Michael Tang PJN, stated:

"I am pleased that POWERCHINA and GCM have confirmed the agreement to extend
the JV Agreements and would like to express my sincere thanks to the
POWERCHINA team for the enthusiasm shown in our partnership to date."

 

 

 

This announcement contains inside information as defined in Article 7 of the
EU Market Abuse Regulation No 596/2014 and has been announced in accordance
with the Company's obligations under Article 17 of that Regulation.

 

 

For further information:

 GCM Resources plc             WH Ireland Ltd

 Keith Fulton                  James Joyce

 Finance Director              Andrew De Andrade

  +44 (0) 20 7290 1630         +44 (0) 20 7220 1666

 GCM Resources plc
 Tel: +44 (0) 20 7290 1630
 info@gcmplc.com; www.gcmplc.com (http://www.gcmplc.com)

 

 

About GCM Resources

GCM Resources plc (LON:GCM), the AIM listed mining and energy company, has
identified a high-quality coal resource of 572 million tonnes (JORC 2004
compliant) at the Phulbari Coal and Power Project (the "Project") in
north-west Bangladesh.

 

Utilising the latest highly energy efficient power generating technology, the
Phulbari coal mine is capable of supporting over 6,000MW power generation. GCM
is awaiting approval from the Government of Bangladesh to develop the Project.
The Company, together with credible, internationally recognised strategic
partners, has a strategy of positioning its proposed coal to supply power
plants at the mine-mouth and other coal-fired power projects in Bangladesh.
GCM aims to deliver a practical power solution to provide the cheapest
electricity in the country, in a manner amenable to the Government of
Bangladesh.

 

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