GCM Resources Regulatory News (GCM)

14 Oct 2005 09:58

Asia Energy PLC14 October 2005 Asian Development Bank mandated for potential senior financing of Asia Energy'sPhulbari Coal Mine London - Asia Energy PLC ('Asia Energy' or 'the Company') announced today thatit has mandated the Asian Development Bank ('ADB') to undertake a Due DiligenceReview for potentially providing senior financing of its Phulbari coal mine inNorthwest Bangladesh. The due diligence will be undertaken by ADB's Private Sector OperationsDepartment, and it will assess the possibility of ADB taking a lead in financingthe mine, either through equity, a direct loan or political risk guarantees. "The involvement of the ADB would be a significant step in the development ofthe Phulbari coal mine," said Asia Energy's Joint Managing Director DavidLenigas. Asia Energy has undertaken a major feasibility study of the Phulbari basin andhas established a resource of 572 million tonnes of high quality bituminous coalwhich it plans to extract by open pit method producing more than 15 milliontonnes a year. The mine has been granted Environmental Clearance and, under terms of itscontract with the Government of Bangladesh ("GoB"). The Company's subsidiaryAsia Energy Corporation (Bangladesh) Pty Ltd has also presented the GoB with aScheme of Development to obtain formal approval to start mining operations. "The ADB is well established in Bangladesh and has been committed to thedevelopment of the country for more than 20 years, in both the private andpublic sectors," said Mr Lenigas. For further information please contact: Michael Frayne, Joint Managing Director Justine Howarth, Cathy Malinsmichael.frayne@asia-energy.com Parkgreen Communications David Lenigas, Joint Managing Director Tel: +44 (0) 20 7493 3713david.lenigas@asia-energy.com justine.howarth@parkgreenmedia.com Asia Energy PLC cathy.malins@parkgreenmedia.com Tel: +44 (0) 20 7079 1798, Fax: +44 (0) 20 7491 2758info@asia-energy.com; www.asia-energy.com This information is provided by RNS The company news service from the London Stock Exchange