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15 Jan 2021 15:57
GCM Resources plc
("GCM" or the "Company")
Joint Venture Update
GCM Resources plc (LON:GCM), an AIM quoted mining and energy company, is pleased to announce that it is in discussions with Power Construction Corporation of China ("PowerChina"), to agree a 12 month extension of the joint venture agreements announced on 17 January 2019 and 13 January 2020 ("First JV Agreement") and 15 March 2019 ("Second JV Agreement") which are otherwise due to expire on 17 January 2021 and 15 March 2021 respectively.
Entering into formal extensions to the First JV Agreement and Second JV Agreement would allow the Company to continue its progress for the development of 4×1,000MW Coal-Fired Power Plant Project ("Power Plant") at the project site. The Power Plant proposed with PowerChina is part of the Company's broader strategy to generate 6,000MW of low-cost electricity for the Bangladesh market utilising domestic coal.
The board of the Company is confident of agreeing such extension terms and a further announcement will be made once an extension is formally entered into.
The CEO of GCM, Datuk Michael Tang PJN, stated:
"I am pleased that POWERCHINA and GCM have engaged in discussions to extend the JV Agreements and would like to express my sincere thanks to the POWERCHINA team for the enthusiasm shown in our partnership to date."
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 Keith Fulton Finance Director +44 (0) 20 7290 1630
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WH Ireland Ltd James Joyce James Sinclair-Ford +44 (0) 20 7220 1666 |
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GCM Resources plc |
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Tel: +44 (0) 20 7290 1630 |
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info@gcmplc.com; www.gcmplc.com |
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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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