GCM Resources Regulatory News (GCM)

16 May 2007 15:05

Global Coal Management PLC16 May 2007 PRESS RELEASE 16 May 2007 Global Coal Management ("GCM" or "the Company") GCM to invest in China Coal & Energy Corporation Global Coal Management plc ("GCM" or "the Company") announces that it has agreedin principle to invest US$5 million in cash for a 5% equity interest in ChinaCoal & Energy Corporation ("CCEC"), an unquoted BVI company operating in Beijingestablished for the purpose of acquiring coking and thermal coal projects inChina. The investment is subject to a successful due diligence currently beingundertaken. CCEC has entered into several conditional Heads of Agreements pursuant to whichit may, subject to funding, acquire or joint venture various thermal coalprojects primarily in Shanxi and Inner Mongolia, ranging from operatingintegrated coal mining and coke processing facilities to coal developmentprojects with resources of several billion tonnes each. GCM will evaluate a number of these projects with a view to entering into jointventures on a case-by-case basis. With the exception of the integrated coalmining and coke processing facilities, the remaining coal properties are atpre-feasibility and exploration stage but appear to be substantial coalresources which could be suited to large scale mining. As these projects will require significant technical assistance, GCM have agreedto provide management services to CCEC directly and will be guiding itstechnical management and development. Mr Steve Bywater, GCM's Chief Executive,will join the Board of CCEC. Legally binding documentation in relation to this arrangement is expected to besigned in the coming weeks and on signatures a further announcement will bemade. "The proposed relationship with CCEC on these exciting projects in Chinautilises the strong coal management expertise that exists within the Company andcontinues our aim of becoming a global coal management company," said SteveBywater, GCM's Chief Executive. The Company remains committed to implementing the Phulbari Coal Project Schemeof Development with the Government of Bangladesh and will advise the market onany substantive developments as they become available. For Further Information: Global Coal Management:Steve BywaterChief ExecutivePh: +44 (0)207 290 1630 Graham TaggartFinance DirectorPh: +44 (0)207 290 1630 Pelham Public Relations:Charles VivianPh : +44 (0)207 743 6672Email : charles.vivian@pelhampr.com James MacfarlanePh: +44 (0)207 743 6375Email: james.macfarlane@pelhampr.com Notes to editors: About Global Coal Management plc: Global Coal Management (formerly Asia Energy plc) is a London based companyquoted on the London Stock Exchange's Alternative Investment Market ("AIM").The Company is strategically focused on coal and related investments across arange of geographical locations including: South Africa, Bangladesh and recentlyChina with the aim of sourcing potential opportunities that offer near returnwhilst mitigating risk through the development of a diverse portfolio of assets.Primarily focused on the exploration and development of coal deposits theCompany also targets related infrastructure such as power plants andtelecommunications networks to build on related areas of the coal miningindustry and support local development. The Company's primary activity is the development of the Phulbari Coal Projectin Northwest Bangladesh into a world class open pit mine, adhering to thehighest national and international environmental and social standards. The minewill have a life of more than 30 years and at full capacity will produce 15million tonnes a year of mostly export quality metallurgical and thermal coal.Its objective is to start mining activity once it has Government of Bangladeshapproval for the Scheme of Development and Feasibility Study. In December 2006, the company invested in GVM Metals Limited, an Australianlisted company, whose focus is to bring its South African coal properties toproduction. The investment provides GCM with valuable access to the SouthAfrican coal industry and strengthens the Company's strategy aimed at buildingup a diverse portfolio of assets. GVM metals has three projects: Holfonteinproject, Limpopo project and the Baobab project, which will prove GCM with theopportunity to assist in the development of both underground and open-cut coalmines. GCM also made a strategic investment in the Bangladesh telecommunicationsmarket, acquiring 26.5% of Peoples Telecommunications and Information ServicesLtd (PeoplesTel) For further information: www.gcmplc.com China Coal & Energy Corporation CCEC is a single purpose BVI entity established to create a China-focused Coal &Green Energy company. By focusing on two regions earmarked by the government forsignificant development in the next three to five years, it is intended that aportfolio of properties at various stages of development will be acquired tocreate a company that will generate early revenue with significant growthpotential. This information is provided by RNS The company news service from the London Stock Exchange