GCM Resources Regulatory News (GCM)

21 March 2018

GCM Resources plc

("GCM" or the "Company")

(AIM:GCM) 

Contract Framework Agreement with Strategic Partner

GCM Resources plc ("GCM" or the "Company"), a London based resource exploration and development company, is pleased to announce that the Company has agreed a Contract Framework Agreement with its strategic partner China Gezhouba Group International Engineering Co. Ltd ("CGGC").

The Contract Framework Agreement awards CGGC the exclusive right for the engineering, procurement, construction, and commissioning of a proposed 2,000MW mine-mouth thermal power plant at GCM's proposed coal mine in North-West Bangladesh for an agreed initial estimated cost of US$3.8bn which shall be subject to further adjustments when the parties finalise a full engineering, procurement, construction and commissioning ("EPC") contract. This agreement follows on from the Joint Development Framework Agreement announced on 9 March this year which outlined the roles and responsibilities of both companies in pursing approval of the Phulbari Coal and Power Project.

CGGC is the main international business company of both China Gezhouba Group Corporation and China Energy Engineering Co. Ltd ("Energy China"). Energy China is a super central state-owned enterprise, and in 2017 ranked 312th in the Fortune Global 500. In the last three years, Energy China engaged in the design and construction of power plants with a total installed capacity of nearly 220GW, ranked first in the world.

Datuk Michael Tang PJN, Executive Chairman stated "We are delighted to finalise this EPC framework agreement with CGGC, which is to build the proposed 2,000MW mine-mouth thermal power plant provided that consent is obtained from the Government of Bangladesh and upon a definitive EPC agreement being negotiated. We look forward to working together with CGGC to move the Company's Project forward. The Project can support up to 6,000MW at the mine-mouth and/or at other strategic sites within Bangladesh."