GCM Resources Regulatory News (GCM)

GCM Resources plc

("GCM" or the "Company")

(AIM:GCM) 

MOU Extension

The Company advises that, further to its announcement of 6 December 2020, Power Construction Corporation of China, Ltd. ("PowerChina") has agreed to an extension of the memorandum of understanding ("MoU") for a period of a further 6 months from 6 June 2021 to 6 December 2021 on the same terms as the previous MoU, to which the Company had agreed. This continues to enable PowerChina to have continuing discussions in regards to a higher participation in the Project as part of the mine mouth integrated power plants, subject to the approval of PowerChina's internal compliance and all other relevant regulatory agencies.

The Company notes that significant progress has already been made with China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd. ("NFC") and PowerChina under the MoU. This extension will enable the Company to further progress a strategic partnership for development of 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"). 

As announced on 14 October 2020, the Company has entered into a Framework Agreement with NFC focused on the coal mine development and this extension of the MOU will enable the Company to continue to work with PowerChina towards a Framework Agreement.

Michael Tang, Executive Chairman of GCM, commented: "We are pleased to report that this agreement of an extension of the MOU with PowerChina continues our process towards finalising our strategic partnership with NFC and PowerChina. These Companies are highly respected globally and, in becoming strategic partners to the Project, the GCM Board appreciates the tremendous strength and credibility they add to the Project."

"I would like to thank the teams at both NFC and PowerChina for their dedication and continuing support, particularly during this global crisis, towards delivering the Project and its substantial benefits for the Government of Bangladesh, its people and our stakeholders."

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 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.