(Alliance News) - GCM Resources PLC on Wednesday said it has signed a consultancy agreement with DG Infratech Pte Ltd to advance its Phulbari coal and power project in north-west Bangladesh.
Shares in GCM Resources were down 5.1% at 18.50 pence in London in afternoon trading.
The mining and energy company has hired DG Infratech to provide "advisory, management, lobbying and consultancy services", with a view to winning approval for developing the company's power projects.
DG Infratech will be paid a GBP12,000 monthly retainer payable in shares at 18 pence per share, plus milestone payments also in shares.
Upon written approval of the coal project scheme of development, DG Infratech will be paid a "success fee" equal to 5% of GCM Resources' issued capital at that time. It will receive a further 2% of capital fee for each of the power plants and another 4% of capital then the coal project commences development.
GCM Resources Executive Chair Datuk Michael Tang PJN said: "I am delighted to engage the services of DG Infratech and look forward to working with them to drive significant progress in pursuit of our goals.
"Our primary objective remains to deliver an impact project for the people of Bangladesh, providing low cost and sustainable electricity in the country, by combining the company's coal mine proposal, with mine mouth power plants generating 6,000 megawatts.
"The economic interests of both DG Infratech and our company are aligned: to achieve successful progression of the proposed coal project and power plant projects. I am confident that the consultancy agreement will unlock significant value for our shareholders in time to come."
GCM Resources (GCM)