REG - GCM Resources PLC - Next Stage Agreement

GCM ResourcesAnnouncement

09/03/2018 11:05

RNS Number : 2716H
GCM Resources PLC
09 March 2018
9 March 2018
GCM Resources plc
("GCM" or the "Company")
(AIM:GCM)
Next Stage Agreement with Partner for Phulbari Coal and Power Project
GCM Resources plc ("GCM" or the "Company"), a London based resource exploration and development company, is pleased to announce that the Company has agreed a Joint Development Framework Agreement with its strategic partner China Gezhouba Group International Engineering Co. Ltd ("CGGC").
CGGC is an internationally recognised engineering company with infrastructure projects across the world. Its parent, China Gezhouba Group Corporation (en.gzbgj.ceec.net.cn) is a core member of China Energy Engineering Group Co Ltd, a super central state-owned enterprise, and employs approximately 40,000 people.
The Joint Development Framework Agreement outlines the parties' roles and responsibilities in pursing approval of the Phulbari Coal and Power Project, including a commitment by CGGC (or its affiliate or investment partner) to invest up to 30% in the power plant, subject to approval by Chinese authorities, with GCM holding the balance of interest. Under the agreement CGGC undertakes to facilitate financing for the proposed power plant with GCM's assistance.
Datuk Michael Tang PJN, Executive Chairman stated: "After months of negotiation we are delighted to conclude these agreements with our partner, CGGC. I would like to take this opportunity to thank the management team of CGGC for their ongoing support and enthusiasm, and look forward to working with them as we jointly pursue this exciting opportunity."
Mr Chen Xiangdong, Vice President of China Gezhouba Group International Engineering Co. Ltd stated: "CGGC International is a leading implementer of China's 'Belt & Road' Initiative and seeks projects that are in line with this initiative and that promote social progress. We are pleased to have secured the Joint Development Framework Agreement for GCM's proposed 2,000MW power plant and look forward to assisting GCM in progressing both the mine and the power plant for the benefit of Bangladesh."
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
James Hobson
Finance Director
+44 (0) 20 7290 1630
Northland Capital Partners Ltd
Nominated Adviser and Broker
Tom Price
Matthew Johnson
+44 (0) 203 861 6625


GCM Resources plc

Tel: +44 (0) 20 7290 1630

info@gcmplc.com; www.gcmplc.com


This information is provided by RNS
The company news service from the London Stock Exchange
END
STRKMGGFGLNGRZM