REG - GCM Resources PLC - MOU Extension & Drawdown on Existing Polo Loan

GCM ResourcesAnnouncement

28/11/2023 17:15

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RNS Number : 9609U  GCM Resources PLC  28 November 2023

28 November 2023

 

GCM Resources plc

("GCM" or the "Company")

(AIM:GCM)

 

MOU Extension - Phulbari Coal Mine Development &

Drawdown Request on Existing Polo Resources Ltd Loan Facility

 

 

MOU Extension - Phulbari Coal Mine Development

GCM Resources plc (LON:GCM), an AIM quoted mining and energy company advises
that, further to its announcements of 23 November 2021, June 2021 and 12
December 2022, Power Construction Corporation of China, Ltd. ("PowerChina") it
has agreed an extension for a period of a further 12 months from 6 December
2023 to 6 December 2024 on the same terms as the previous memorandum of
understanding ("MoU") which is primarily focused on the Phulbari coal mine
development. This will allow PowerChina and GCM to continue to work on
determining the modality for PowerChina to become a Mine Development Partner,
subject to the approval of PowerChina internal compliance and all other
relevant regulatory agencies.

 

Under the MoU, PowerChina and GCM will discuss and negotiate a mutually agreed
business relationship to partner each other in developing the proposed coal
mine based on the world-class high quality coal resource of 572 million tonnes
(JORC 2004 compliant) at the Phulbari Coal and Power Project in North-West
Bangladesh (the "Project").  These discussions will cover key areas of
finance, project development and mining operations.

 

It has been reported in Bangladesh that the government is working on new plans
for energy supply to feed its diverse range of power plants.  The economic
pressures, driven largely by the vagaries of the international energy market,
appear to be driving a re-focus towards developing domestic energy
resources.  Bangladesh's currently installed coal-fired power plants of just
over 6,000 MW, already can consume virtually all the planned Phulbari coal
mine's production and the Government's plan is to double this capacity.  GCM
remains confident that the Project will help the Country move away from an
almost total dependance on expensive imported energy.

 

Drawdown Request on Existing Polo Resources Ltd Loan Facility

The Company announced on 14 June 2023 that it needed to carry out an
additional fundraise before the end of 2023 to fund its working capital into
2024. In relation to the Loan Facility with Polo Resources Ltd ("Polo") as
announced on 26 March 2021 and as amended and announced on 3 March 2022, the
Company has requested to drawn down a further £300,000 in accordance with the
terms announced thereon. The Company will make a further announcement on
receipt of the drawdown funds from Polo which would extend its working capital
beyond the end of December 2023.

 

The Company on receipt of this further drawdown will have then utilised the
full £3.5million of the £3.5million facility. Funds from this current
drawdown request along with existing cash balances would  be sufficient to
fund the Company through to the end of March 2024.

 

Michael Tang, Executive Chairman of GCM, commented: "GCM has established a
solid working relationship with PowerChina on the Phulbari Coal and Power
Project.  PowerChina appreciates the enormous benefits that will accrue for
Bangladesh and all other stakeholder through the development of the Phulbari
coal mine.  We are very pleased to report this MOU extension, confirming GCM
and PowerChina are continuing to work on forming a partnership for developing
the proposed coal mine.

 

 

 

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 can support some 6,600MW. GCM requires approval from the
Government of Bangladesh in order to develop the Project. The Company has a
strategy of linking the Company's mine proposal to supplying coal to the
Government of Bangladesh's existing and in the pipeline coal-fired power
plants and / or power plants developed development partners. Together with
credible, internationally recognised strategic development partners, GCM aims
to deliver a practical power solution to provide the cheapest coal-fired
electricity in the country, in a manner amenable to the Government of
Bangladesh.

 

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