Extension of PowerChina Joint Venture Agreements

RNS Number : 5488E

GCM Resources PLC

11 March 2022

 

11 March 2022

GCM Resources plc

("GCM" or the "Company")

Extension of Joint Venture Agreements with PowerChina

GCM Resources plc (LON:GCM), an AIM quoted mining and energy company , is pleased to announce that further to the announcement of 19 January 2021, it has completed the extension of the joint venture agreements announced on 17 January 2019 and 13 January 2020 ("First JV Agreement") and 15 March 2019 ("Second JV Agreement") with Power Construction Corporation of China ("PowerChina") . The joint venture agreements which were both due to expire on 15 March 2021 have both been extend for a further two years to 15 March 2024.

GCM and PowerChina ("the Parties") foresee the Phulbari geological basin being transformed into an "Energy Park", potentially supplying large scale solar power, thermal power and high-energy thermal and metallurgical coal to Bangladesh's domestic markets.

The Parties back in November 2021 entered into an MOU aimed at negotiating a mutually agreed business relationship to partner each other in developing the proposed coal mine. The Parties now reinforce their belief that the High-Efficiency, Low-Emissions Coal-Fired Power Generation planned under these Joint Venture Agreements remain an attractive option available to the Bangladesh Government.  An 'Energy Park" at Phulbari would provide a high level of energy and power security for the Country as it continues to develop its economy and at the same time moves towards "Net Zero Emission" targets over the moving decades.

The CEO of GCM, Datuk Michael Tang PJN, stated :

" I am pleased that POWERCHINA and GCM have confirmed the agreement to extend the JV Agreements and would like to express my sincere thanks to the POWERCHINA team for the enthusiasm shown in our partnership to date."

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.

For further information:

GCM Resources plc Keith Fulton Finance Director  [phone]	WH Ireland Ltd James Joyce Andrew De Andrade [phone]
GCM Resources plc
Tel: [phone]
[e-mail]; www.gcmplc.com

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 over 6,000MW power generation. GCM is awaiting approval from the Government of Bangladesh to develop the Project. The Company, together with credible, internationally recognised strategic partners, has a strategy of positioning its proposed coal to supply power plants at the mine-mouth and other coal-fired power projects in Bangladesh.  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.

 

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