20 Oct 2010 08:05
Date: 20 October 2010
GCM RESOURCES PLC
(AIM: GCM)
SALE OF INTEREST IN GCM AURA JOINT VENTURES
GCM Resources plc ("GCM") has reached agreement with Aura Energy Limited ("Aura") for the sale of its interests in the Aura/GCM West African Alliance and joint venture projects to Aura. GCM will receive consideration of US$1.4 million on completion and a further US$0.5 million on the first anniversary of completion. Additional consideration may become payable if certain resource targets are met. Completion is conditional on Aura successfully completing its due diligence.
GCM's Chief Executive Steve Bywater commented "The alliance with Aura was very successful in identifying a number of prospective opportunities in West Africa. However, as the focus for GCM is the Phulbari Coal Project in Bangladesh, the development of which is awaiting the approval of the Government of Bangladesh, this transaction is in the best interests of both companies."
For further information:
| GCM Resources plc Steve Bywater Chief Executive +44 (0) 20 7290 1630
Graham Taggart Finance Director +44 (0) 20 7290 1630
| Pelham Bell Pottinger Charles Vivian 44 (0)207 861 3126
Klara Kaczmarek +44 (0)207 861 3883 |
| J.P. Morgan Cazenove Nominated Adviser
Michael Wentworth-Stanley
+44 (0) 207 588 2828 |
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| GCM Resources plc |
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| Tel: +44 (0) 20 7 290 1630, Fax: +44 (0) 20 7290 1631 |
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| info@gcmplc.com; www.gcmplc.com
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GCM Resources (GCM)