REG - GCM Resources PLC - MOU Extension – Phulbari Coal Mine Development

GCM ResourcesAnnouncement

23/11/2021 15:45

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RNS Number : 3199T  GCM Resources PLC  23 November 2021

23 November 2021

 

GCM Resources plc

("GCM" or the "Company")

(AIM:GCM)

 

MOU Extension - Phulbari Coal Mine Development

 

The Company advises that, further to its announcement of 2 June 2021, Power
Construction Corporation of China, Ltd. ("PowerChina") has agreed to an
extension for a period of a further 12 months from 6 December 2021 to 6
December 2022 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 determine 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.

 

As announced on 19 October 2021, GCM remains in discussions with China
Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd.
("NFC") regarding an extension of the framework agreement announced on 15
October 2020 which expired on 12 October 2021.

 

Michael Tang, Executive Chairman of GCM, commented: "GCM continues to work
closely with PowerChina on the Phulbari Coal and Power Project.  PowerChina
brings an incredible amount experience and credibility to the Project.  We
are very pleased to report the extension of the MOU with PowerChina and
continuing the ongoing discussions leading up to a partnership in developing
the proposed coal mine, which is a pivotal aspect of the Project.

 

 

 

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 power generation of over 6,000MW.
GCM is awaiting approval from the Government of Bangladesh to develop the
Project. The Company has a strategy of combining the Company's mine proposal
with up to 6,000MW of power generation and/or alternatively supplying coal to
the Government of Bangladesh's existing and in the pipeline coal-fired power
plants.  Together with credible, internationally recognised strategic
partners, 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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