Share placement

RNS Number : 7327M

GCM Resources PLC

29 August 2013

 



29^th August 2013

GCM Resources plc 

(the "Company" or "GCM Resources")

 (AIM:GCM)

Share placement

GCM Resources plc ('GCM' or the 'Company'), a resource exploration and development company, is pleased to advise that the Company has agreed an equity placement of 11,700,007 shares at 19.8p per share, raising £2,316,601.   The placing is subject to funds being received. The placement price is equal to the 30 day Volume Weighted Average Closing Price.

Upon completion 9,427,280 shares will be issued to MEG Global Ventures Pte Ltd, equivalent to 15% of the enlarged issued capital of the Company.  MEG Global Ventures Pte Ltd is a wholly owned subsidiary of Magnus Energy Group Limited ("Magnus"), an energy resource business listed on the Singapore Stock Exchange.  Restrictions have been put in place on the subsequent sale of shares by Magnus.

Existing major shareholders were invited to take part in the share placement in order to retain their interest in the enlarged issued capital of the Company. Polo Resources Limited, a 29.8% shareholder, agreed to an equity placement of 2,272,727 shares at the same price. Upon successful placement Polo Resources Limited will own 27.8% of the enlarged capital.

Michael Tang, the Executive Chairman commented: "I would like to welcome Magnus as a new major shareholder of the Company and look forward to their contribution in pursuing shareholder value. The monies raised will be used to continue the operations of the Company in pursuing approval of the Phulbari Coal Project in Bangladesh.  I would also like to thank Polo Resources Limited which has contributed to the share subscription and for the confidence placed in the Company." 

Application will be made to the London Stock Exchange for the admission of the new shares to AIM. A further announcement will be made upon completion of the placement.

For further information:

GCM Resources plc James Hobson CFO & Company Secretary  [phone]	Pelham Bell Pottinger Lorna Spears / Joanna Boon [phone]
ZAI Corporate Finance Ltd Nominated Adviser and Broker Tom Price [phone]

GCM Resources plc
Tel: [phone]
[e-mail]; www.gcmplc.com

 

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