Acquisition

1 Feb 2008 17:17

Polo Resources Limited01 February 2008 1st February 2008 Polo Resources Limited ('Polo Resources' or 'the Company') Acquisition of Interest in GCM Resources plc Polo Resources Limited (AIM:PRL), the natural resources investment and miningcompany, announces that it has reached agreement to acquire an importantstrategic interest in GCM Resources plc ("GCM"), formerly known as Asia Energyplc, representing approximately 20.5 per cent. of GCM's issued share capital. Polo Resources has entered into an agreement to purchase 10,000,000 GCM ordinaryshares from RAB Special Situations (Master) Fund Limited ("RAB") for a totalconsideration of £9,000,000 in cash and 72,340,425 ordinary shares of no parvalue in the capital of Polo Resources, which are to be issued to RAB (or theirnominee) on completion. Completion of the acquisition of the GCM stake issubject to shareholder approval at a General Meeting of the Company. GCM, an AIM quoted London-based resource development company (AIM:GCM), isengaged in developing a world class coal mine and power plant project inBangladesh, the Phulbari Project. The mine life is expected to be more than 30years, with production of 15 million tonnes at full capacity of mostly exportquality metallurgical and thermal coal. The Phulbari Project plans to add toBangladesh's energy security by reliably delivering coal to the domestic market.There is the potential to install up to 1000 MW of coal fired power generatingcapacity at the mine site. In addition, GCM has invested in GVM Metals Limited, whose primary focus is tobring various South African coal properties to production. This investmentprovides GCM with a meaningful stake in the South African coal sector and theopportunity to assist development of a number of underground and open-cut coalmines. A meeting of the shareholders of the Company will be called in due course atwhich the resolution to approve the acquisition of the GCM shares will beproposed. Stephen Dattels, Chairman of Polo Resources, said: "The GCM acquisition represents a strategic opportunity as Polo Resources seeksto become a major international coal mining and exploration group. Our strategyis to acquire interests in coal projects strategically located to serve therapidly growing Asian market." Contacts: Polo Resources Limited: Guy Elliot (Non-Executive Chairman) Tel +1 941 284 5954 Suresh Hiremath Tel +44 (0) 207 586 4629 Canaccord Adams Tel +44 (0) 207 050 6500 Robin Birchall/ Andrew Chubb Financial Dynamics Tel: +44 (0) 20 7831 3113 Ben Brewerton Edward Westropp This information is provided by RNS The company news service from the London Stock Exchange