GCM Resources Regulatory News (GCM)

23 November 2021

GCM Resources plc

("GCM" or the "Company")

(AIM:GCM) 

MOU Extension - Phulbari Coal Mine Development

The Company advises that, further to its announcement of 2 June 2021, Power Construction Corporation of China, Ltd. ("PowerChina") has agreed to an extension for a period of a further 12 months from 6 December 2021 to 6 December 2022 on the same terms as the previous memorandum of understanding ("MoU") which is primarily focused on the Phulbari coal mine development. This will allow PowerChina and GCM to determine the modality for PowerChina to become a Mine Development Partner, subject to the approval of PowerChina internal compliance and all other relevant regulatory agencies.

Under the MoU, PowerChina and GCM will discuss and negotiate a mutually agreed business relationship to partner each other in developing the proposed coal mine based on the world class high quality coal resource of 572 million tonnes (JORC 2004 compliant) at the Phulbari Coal and Power Project in North-West Bangladesh (the "Project"). These discussions will cover key areas of finance, project development and mining operations.

As announced on 19 October 2021, GCM remains in discussions with China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd. ("NFC") regarding an extension of the framework agreement announced on 15 October 2020 which expired on 12 October 2021.

Michael Tang, Executive Chairman of GCM, commented: "GCM continues to work closely with PowerChina on the Phulbari Coal and Power Project. PowerChina brings an incredible amount experience and credibility to the Project. We are very pleased to report the extension of the MOU with PowerChina and continuing the ongoing discussions leading up to a partnership in developing the proposed coal mine, which is a pivotal aspect of the Project. 

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.

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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 generation of over 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 and/or alternatively supplying coal to the Government of Bangladesh's existing and in the pipeline coal-fired power plants. 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.