GCM Resources Regulatory News (GCM)

20 Mar 2006 07:10

Asia Energy PLC20 March 2006 Asia Energy announces plans to list on the Stock Exchange in Bangladesh Dhaka, 20 March 2006 - Asia Energy ("the Company"), which is developing thePhulbari Coal Project ("the Project") in Northwest Bangladesh, today announcedthat it is planning to list on the stock exchange in Bangladesh. The Company said it had signed a Letter of Intent with Equity Partners Limited,("EPL") a majority foreign owned local merchant bank, for an initial publicoffering later this year as part of the Company's Phulbari Coal Project funding.The local listing will take place as soon as practical following the Projectapproval by the Government of Bangladesh ("GoB") the Company said. "This decision is part of Asia Energy's commitment to giving investors inBangladesh an opportunity to share in this major development project," said MrGary Lye, CEO of Asia Energy Corporation (Bangladesh) Pty Ltd. "It is also ameasure of our long-term commitment to Bangladesh." Asia Energy, which operates in Bangladesh under an existing contract with theGoB, is in the final stages of Project approval and financing for its planned 15million tonnes per annum open pit coal mine at Phulbari, in the DinajpurDistrict. It has established a resource of 572 million tonnes of high quality thermal andsemi-soft coking coal in the Phulbari coal basin, and is waiting for GoBapproval of its Scheme of Development for the mine in line with its contract.Plans for the mine were given Environmental Clearance by the GoB in September2005. Pre-mining activity is scheduled to start immediately following Project approvalwith first coal expected in late 2008 and production then increasing rapidly to15 million tonnes per annum by 2013. The Company is also proposing to build a500MW power plant at the mine site. The Company expects that some 3 million tonnes of coal per annum will remain inBangladesh for industrial and power uses. Expressions of interest for themarketing and distribution of this coal into the local economy will be soughtshortly after Government approvals. Local construction contracts will also besought for the significant infrastructure required for the Project and relatedcommunity housing and services. Shares in Asia Energy PLC are quoted on the London Stock Exchange's AlternativeInvestment Market ("AIM"). Leading London based advisors for Asia Energy are JPMorgan Cazenove and Barclays Capital. Equity Partners Limited is a full service merchant Bank licensed by theBangladesh Securities Exchange Commission. EPL has been responsible for thelistings of Lafarge Surma Cement Limited, currently the largest company bymarket capitalisation in Bangladesh, and several other successful listings andadvisory mandates, including the cross-border acquisitions in Bangladesh byMumbai-stock exchange listed Marico Industries Limited. EPL was also recentlyappointed one of the major local partners of German Development Company (DEG) toidentify new business opportunities in Bangladesh. For further informationSteve Bywater, Chief Executive (London) Justine Howarth, Cathy MalinsTel: +44 (0) 20 7079 1798 Parkgreen CommunicationsFax: +44 (0) 20 7491 2758 Tel: +44 (0) 207 493 3713 cathy.malins@parkgreenmedia.comGary Lye, Chief Operating Officer:(Bangladesh) justine.howarth@parkgreenmedia.comTel:+88 0173016704info@asia-energy.com This information is provided by RNS The company news service from the London Stock Exchange