REG - GCM Resources PLC - Subscription to raise £2.0 million

GCM ResourcesAnnouncement

16/04/2024 07:00

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RNS Number : 7103K  GCM Resources PLC  16 April 2024

 

 

GCM Resources plc

("GCM" or the "Company")

 

Subscription to raise £2.0 million

 

Appointment of Joint Broker

 

 

GCM Resources plc, the AIM traded mining and energy company, has successfully
raised £2.0m through a direct subscription (the "Subscription") of 30,769,230
new Ordinary Shares of 1p each (the "Subscription Shares") at a price of 6.5
pence per share (the "Subscription Price").

 

The Subscription Price represents a discount of 24.6 per cent to the Closing
Price of 8.625 pence per Ordinary Share on 15 April 2024.The Subscription
Shares will represent 11.1 per cent. of the Enlarged Issued Share Capital

 

The net proceeds of the Subscription will provide the Company with working
capital to support the strategy to progress the Phulbari Coal and Power
Project through the next 16 months on the Company's current cost basis.

 

Axis Capital Markets Limited ("Axis Capital") has subscribed for the shares on
behalf of its clients. GCM has appointed Axis Capital as joint broker to the
Company with immediate effect.

 

Commenting on the Subscription, Michael Tang CEO said: " I am delighted with
the support from the London Market, which comes at a time when we are
increasingly more confident that the Government of Bangladesh is receptive to
the advantages of domestic energy production; our focus and main effort now is
to secure the consent to develop the Phulbari Coal and Power Project, which we
are well placed to develop alongside our global energy infrastructure
partners, Power China."

 

The Subscription

 

The Company will issue 30,769,230 Subscription Shares, to raise gross proceeds
of £2,000,000 to participants in the Subscription. The Subscription Shares
will be admitted ("Admission") to trading on the AIM market ("AIM") of London
Stock Exchange plc ("LSE") on or around 19 April 2024.

 

The Subscription is conditional, inter alia, on Admission of the Subscription
Shares to trading on AIM, the Subscription has been conducted utilising the
Company's existing share authorities.

 

The Subscription Shares will be issued, credited as fully paid, and will rank
pari passu with the existing Ordinary Shares in issue in the capital of the
Company, including the right to receive all dividends and other distributions
(if any) declared, made or paid on or in respect of such shares after the date
of their issue. Settlement will occur on a delayed basis on terms typical for
a transaction of this nature.

 

Admission and Disclosure and Transparency Rules

Application has been made to the London Stock Exchange for, in aggregate,
30,769,230 new Ordinary Shares to be admitted to AIM. It is expected that
Admission will become effective on 19 April 2024. Following Admission, the
Company's enlarged issued share capital will comprise 276,365,604 Ordinary
Shares with voting rights in the Company. As the Company holds no shares in
treasury, this is the total number of the voting rights in the Company which
may be used by shareholders as the denominator for the calculations by which
they will determine if they are required to notify their interest, or a change
in the interest, in the share capital of the Company under Chapter 5 of the
FCA's Disclosure Guidance and Transparency Rules as reflected in the Company's
articles of incorporation.

 

 

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                                        WH Ireland Ltd (Nominated Adviser & Broker)

 Keith Fulton                                             James Joyce

 Finance Director                                         James Bavister

  +44 (0) 20 7290 1630                                    Andrew De Andrade

                                                          +44 (0) 20 7220 1666
 GCM Resources plc
 Tel: +44 (0) 20 7290 1630
 info@gcmplc.com; www.gcmplc.com (http://www.gcmplc.com)  Axis Capital Markets Ltd ( Joint Broker)
                                                          Ben Tadd/Lewis Jones
                                                          +44 (0) 203 026 0320

 

 

About GCM Resources

GCM Resources plc (LON:GCM), the AIM traded 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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