GCM Resources Regulatory News (GCM)

30 April 2021

GCM Resources plc

("GCM" or the "Company")

(AIM:GCM) 

Share issue - Consultants

GCM Resources plc, an AIM quoted mining and energy company, announces the issuance of new ordinary shares of 1 pence each in the capital of the Company ("Ordinary Shares") as payment of consulting fees in accordance with the consultancy agreement announced on 26 October 2018 and extended on 29 June 2020, with Dyani Corporation Limited ("Dyani") (the "Dyani Agreement"), and in accordance with the consultancy agreement announced on 4 September 2019, with DG Infratech Pte Ltd ("DG") (the "DG Agreement") (together, the "Agreements").

The Agreements provide that new Ordinary Shares would be awarded to Dyani and DG in the event that certain key milestones were reached in respect of formally securing the interest of Chinese State-owned enterprises to partner in the Phulbari Coal and Power Project. Details of these milestones are set out in the Company's announcements dated 26 October 2018 and 29 June 2020, with respect to the Dyani Agreement, and 4 September 2019 with respect to the DG Agreement.

Accordingly, the following consulting fees will be settled via the issuance of new Ordinary Shares:

· in lieu of Dyani's retainer fee for the period from 1 July 2020 to 31 March 2021, the Company will issue 1,607,142 new Ordinary Shares to Dyani;

· for the negotiation and finalisation of the Framework Agreement with China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd. ("NFC") in respect of the Mine, as announced on 15 October 2020 a success fee will be awarded to Dyani, to be satisfied by the issue of 3,557,449 new Ordinary Shares; and

· in lieu of DG's retainer fee for the period from 1 September 2020 to 28 February 2021, the Company will issue 400,000 new Ordinary Shares to DG.

GCM confirms that following the issue of new Ordinary Shares set out above, Dyani will be interested in 19.2% of the Company's enlarged issued ordinary share capital.

Under the terms of the Dyani Agreement, Dyani will be restricted from disposing of the new Ordinary Shares issued in satisfaction of the success fees for a period of six months from the date of issue. There are no restrictions on disposal of the shares issued in respect of the retainer fees issued to either Dyani or DG, which are intended to cover the respective consultants' costs in performing their services.

Application will be made to the London Stock Exchange for, in aggregate, 5,564,591 new Ordinary Shares to be admitted to AIM ("Admission"). It is expected that Admission will become effective on 7 May 2021. Following Admission, the Company's enlarged issued share capital will comprise 137,592,882 Ordinary Shares with voting rights in the Company. As the Company holds no shares in treasury, this is the total number of the voting rights in the Company which may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest, or a change in the interest, in the share capital of the Company under Chapter 5 of the FCA's Disclosure Guidance and Transparency Rules as reflected in the Company's articles of incorporation.

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.