REG - GCM Resources PLC - Proposed Solar Project - JDA

GCM ResourcesAnnouncement

09/01/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230109:nRSI0138Ma&default-theme=true

RNS Number : 0138M  GCM Resources PLC  09 January 2023

9 January 2023

GCM Resources plc

("GCM" or the "Company")

 

Proposed Solar Project - Joint Development Agreement

 

GCM Resources plc (LON: GCM), an AIM quoted mining and energy company, is
pleased to advise that it has agreed a Joint Development Agreement ("JDA")
with PowerChina International Group Limited ("POWERCHINA"), and Dyani
Corporation Ltd ("DYANI") in relation to a proposed new greenfield solar
project called the Dinajpur Solar Power Project ("SOLAR PROJECT") which would
be an adjunct project in conjunction with the Phulbari Coal and Power Project
("the Project").

 

The Parties intend to participate in the Solar Project by equity investment
and form exclusive cooperation to develop the Solar Project on the terms and
conditions of the JDA. The development activities include all tasks required
including development, financing, construction and operation of the Solar
Project, and all activities incidental thereto, and entering into related
arrangements, documentation and agreements with relevant authorities in
Bangladesh. The Parties intend to appoint PowerChina as EPC Contractor for the
Solar Project with the terms and conditions of the EPC Contract to be
negotiated and agreed by GCM and Dyani.

 

Currently the proposed project is at a conceptual stage and any operational
project would need, amongst other items, permits and project financing. The
solar project's intention would be that should the solar project become
operational that it would be capable of providing power to support the
Phulbari Coal and Power Project and the National grid.

 

Under the JDA, the parties have agreed to the following salient terms:

 

·      GCM, POWERCHINA, and DYANI, shall:

o  Participate in the Solar Project with the interests, rights and
liabilities of the Parties within the Solar Project be in the following
percentage proportions:

§ GCM Resources plc
   50 %

§ PowerChina International Group Limited:       20 %

§ Dyani Corporation Limited:
            30 %

o  GCM's roles and responsibilities shall include

§ Facilitate to obtain all requisite licenses and approvals/ permits from
Government of Bangladesh,

§ Assist and Coordinate residents' resettlement, infrastructure replacement
and land acquisition,

§ Facilitate Powerchina to raise debt finance,

§ To provide technical input and assistance for the Project's feasibility
study report,

§ Provide details of Mining Project power requirements and land availability
schedule,

o  POWERCHINA's roles and responsibilities shall include;

§ To assist with obtaining requisite licenses and approvals/ permits from
Government of Bangladesh, and the Chinese Government,

§ Complete the feasibility study report for the Project,

§ Provide technical and engineering support for the development of the
Project,

§ Lead environmental studies,

§ Lead financial planning, modelling and liaising with finance parties,

§ Coordinate the mobilization and arrangement of the funding of the debt
portion of the project funding for the parties with Chinese or international
financial institutions,

§ Appoint technical consultant, financial advisor, tax advisor, legal
advisor,

o  DYANI's roles and responsibilities shall include;

§ Coordinate the interfaces with or interactions with all the relevant
agencies in China,

§ Assist to procure all the relevant documentation and related information as
may be required from Chinese Government,

§ Assist and facilitate Powerchina to raise debt finance.

o  Notwithstanding any of the provisions in the JDA, the majority of matters
shall require the unanimous written consent of the Parties.

 

The JDA has a term of 12-months and does not at this stage commit any of the
parties to expend any specified sums. It is the intention that it will be
superseded, in due course, by a more detailed working arrangement between the
parties, but may be terminated earlier under certain prescribed conditions.

 

Michael Tang, CEO of GCM, commented: "We are pleased to announce our evolving
relationship with POWERCHINA, and the exciting prospect of being able to
pursue the groundwork for a Solar Project within the Phulbari Coal and Power
Project.  GCM and its mine and power plant development partners look very
much forward to further working with POWERCHINA to integrate the Solar Project
with the existing Project and unleash further significant benefits for
Bangladesh."

 

 

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 could have the capacity to 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  AGRBIGDBUBGDGXI