Last checked at 27 Nov 2018 07:00
27th November 2018
GCM Resources plc
("GCM" or the "Company")
(AIM:GCM)
MOU with PowerChina
GCM Resources plc ("GCM" or the "Company"), an AIM quoted mining and energy company, is pleased to advise that it has agreed a memorandum of understanding ("MOU") with Power Construction Corporation of China, Ltd ("PowerChina").
The MOU embodies the principles of a cooperative relationship between the two parties to develop the Company's proposed coal mine as well as power plants generating up to 4,000MW at the mine site, and sets out the steps towards a future Joint Development Agreement, obtaining approval from the Government of Bangladesh and subsequent development of both the mine and power plants generating 4,000MW.
The principal terms of the MOU are as follows:
· Activities towards development are identified as being investment, planning, approval, financing, ownership, design, construction and operation of the proposed mine and power plants;
· The equity holdings of the coal mine and power plants generating 4,000MW shall be agreed in a future Joint Development Agreement;
· GCM shall assist PowerChina in providing technical and regulatory assistance in completing their feasibility and viability studies;
· GCM shall permit PowerChina to form an investment consortium with other investors acceptable to GCM;
· PowerChina will undertake feasibility and viability studies of the integrated coal mine and power plants generating 4,000MW;
· PowerChina will facilitate the inclusion of the Phulbari Coal and Power Project as a One Belt, One Road Initiative of the People's Republic of China;
· The MOU shall be valid for six months, but shall expire in the event that the parties undertake a new agreement which supersedes the MOU, or if either party decides to terminate the agreement, giving 60 days' notice; and
· The MOU sets out a projected timeframe of concluding a Joint Development Agreement with the parties by 31 December 2018, and subsequently submitting a formal proposal to the Government of Bangladesh by 28 February 2019.
PowerChina is a State-owned Key Enterprise of People's Republic of China, and is a world-leading integrated engineering construction group. In 2018, PowerChina ranked 182nd among Fortune Global 500, 41st among Top 500 Enterprises of China, came 6th in the list of the world's 250 largest global contractors and placed 2nd among top 150 engineering design companies worldwide according to Engineering News-Report.
The Executive Chairman of GCM, Datuk Michael Tang PJN, stated:
"I am delighted to have concluded this MOU with PowerChina, our new highly esteemed strategic partner and would like to thank them for their support and enthusiasm in finalising the agreement. GCM's strategy is to present a holistic power solution to the Government of Bangladesh which can generate 6,000MW for the country. This MOU is another strong step in this direction, and I am excited by the momentum which is being built towards our goals. We are confident that the Phulbari Coal and Power Project will deliver substantial benefits for the Government, the people of Bangladesh and our shareholders."
Mr. Pan Dengyu, Vice President of PowerChina Eurasia and the authorized person for this Project, stated:
"PowerChina is excited to be partnering with GCM to deliver an integrated mine and power plant generation for the people of Bangladesh. We look forward to working with Datuk Michael Tang PJN and his team to deliver a world class proposal acceptable to the Government of Bangladesh."
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 James Hobson Finance Director +44 (0) 20 7290 1630
| Northland Capital Partners Ltd Nominated Adviser and Broker Matthew Johnson, Gerry Beaney, Jamie Spotswood +44 (0) 20 3861 6625 |
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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.