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

GCM ResourcesAnnouncement

29/12/2025 15:45

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20251229:nRSc0315Na&default-theme=true

RNS Number : 0315N  GCM Resources PLC  29 December 2025

The information contained within this announcement was deemed by the Company
to constitute inside information as stipulated under the UK Market Abuse
Regulation.

 

29 December 2025

 

GCM Resources plc

("GCM" or the "Company")

 

MOU Extension - Phulbari Coal Mine Development

 

GCM Resources plc (AIM: GCM), the AIM traded mining and energy company,
announces that Power Construction Corporation of China, Ltd. ("PowerChina")
has agreed to an extension of the memorandum of understanding ("MoU") for a
period of a further 24 months from 6 December 2025 to 6 December 2027 on the
same terms as the previous memorandum of understanding which is primarily
focused on the Phulbari coal mine development.

 

It is acknowledged that working under the MOU, the parties have already taken
a significant step towards developing the Phulbari coal mine. This is
demonstrated by the signing of an EPC contract for "Phulbari Coal Mining
Infrastructure Construction and Overburden Stripping", which was announced by
the Company on 11 March 2024. The scope of work under this contract includes
the design, procurement, installation and commissioning of mine infrastructure
and overburden removal, dewatering and drainage. It also includes selective
mining and stockpiling of valuable industrial mineral co-products that occur
in the overburden and are expected to deliver considerable cashflow for the
Project ahead of any coal extraction. Importantly, the proposed mine
development is now heading in the direction of contract mining which means
that the mining is carried out by an experienced mining contractor utilising
their own resources and mining equipment resulting in reduced technical risk
and start-up capital expenditure requirement.

 

Working under this extended MOU, GCM and PowerChina aim to determine the
modality for PowerChina to become involved in other packages of work and
financing that are necessary to fully develop the Phulbari coal mine.
PowerChina's involvement as a Mine Development Partner remains subject to the
approval of PowerChina internal compliance and all other relevant regulatory
agencies.

 

Michael Tang, Chief Executive of GCM, commented: "Working under the MOU, GCM
and PowerChina will have the opportunity to finalise the remaining work
packages necessary to bring the Phulbari coal mine into production. It also
further strengthens our working relationship and demonstrates our ability to
bring the Project to fruition. Having PowerChina as our Development Partner
will greatly assist with obtaining the necessary Government approval and
demonstrating that the proposed Phulbari coal mine will provide a large
reliable supply of affordable commercial energy that will reduce the Country's
dependence on expensive imported energy products."

 

 

 

For further information:

 

 GCM Resources plc                                              Tel: +44 (0) 20 7290 1630

 Keith Fulton, Finance Director                                 info@gcmplc.com

                                                                www.gcmplc.com (http://www.gcmplc.com)

 Allenby Capital Limited                                        Tel: +44 (0)20 3328 5656

 Nominated Adviser and Joint Broker                             info@allenbycapital.com (mailto:info@allenbycapital.com)

 John Depasquale / Vivek Bhardwaj (Corporate Finance)

 Kelly Gardiner / Lauren Wright (Sales and Corporate Broking)

 Axis Capital Markets Limited                                   Tel: +44 (0) 203 026 0320

 Joint Broker

 Richard Hutchison / Lewis Jones

 

 

About GCM Resources plc

 

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.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCFEIFIUEISEDE



            Copyright 2019 Regulatory News Service, all rights reserved