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

GCM ResourcesAnnouncement

12/12/2022 07:00

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RNS Number : 2978J  GCM Resources PLC  12 December 2022

12 December 2022

 

GCM Resources plc

("GCM" or the "Company")

(AIM:GCM)

 

MOU Extension - Phulbari Coal Mine Development

 

The Company advises that, further to its announcements of 23 November 2021,
and 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
2022 to 6 December 2023 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.

 

Michael Tang, Executive Chairman of GCM, commented: "GCM continues to enhance
our relationship and 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 the pivotal aspect
of the Project.

 

 

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulation (EU) No.
596/2014 which is part of UK law by virtue of the European Union (withdrawal)
Act 2018. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

 

 

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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