REG - GCM Resources PLC - Relationship Agreement with Polo Resources

GCM ResourcesAnnouncement

07/01/2021 07:01

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RNS Number : 8509K  GCM Resources PLC  07 January 2021

 7 January 2021

 

GCM Resources plc

("GCM" or the "Company")

 

 

Relationship Agreement with Polo Resources Ltd

 

Drawdown on Existing Polo Resources Ltd Loan Facility

 

GCM Resources plc (LON:GCM), an AIM quoted mining and energy company, is
pleased to announce that it has entered into a Relationship Agreement with
Polo Resources Limited ("Polo") (the "Agreement"). Polo is currently a private
limited company and owns 28.3% of the Company's issued share capital.

 

The purpose of the Relationship Agreement is to ensure that the Company is
capable of carrying on, at all times, its business independently of Polo.

 

The Relationship Agreement has a minimum term of one year from the execution
date, and thereafter will terminate if the ordinary shares of the Company
cease to be admitted to trading on AIM or Polo ceases to retain an aggregate
interest of 25 per cent or more of the issued ordinary share capital of the
Company.

 

Drawdown on Polo Loan Facility

The Company confirms in relation to the Loan Facility with Polo announced on 3
February 2020, it has today drawn down a further £250,000 in accordance with
the terms announced thereon. The Company has utilised currently £3.2million
of the £3.5million facility. This current drawdown along with existing cash
balances will be sufficient to fund the Company for a further 3 months.

 

 

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.

 

-ends-

 

For further information:

 GCM Resources plc

 Keith Fulton

 Finance Director

 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 plants of up to 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, 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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