Relationship Agreement with Polo Resources

RNS Number : 8509K

GCM Resources PLC

07 January 2021

 

 7 January 2021

GCM Resources plc

("GCM" or the "Company")

Relationship Agreement with Polo Resources Ltd

Drawdown on Existing Polo Resources Ltd Loan Facility

GCM Resources plc (LON:GCM), an AIM quoted mining and energy company, is pleased to announce that it has entered into a Relationship Agreement with Polo Resources Limited ("Polo") (the "Agreement"). Polo is currently a private limited company and owns 28.3% of the Company's issued share capital.

The purpose of the Relationship Agreement is to ensure that the Company is capable of carrying on, at all times, its business independently of Polo.

The Relationship Agreement has a minimum term of one year from the execution date, and thereafter will terminate if the ordinary shares of the Company cease to be admitted to trading on AIM or Polo ceases to retain an aggregate interest of 25 per cent or more of the issued ordinary share capital of the Company. 

Drawdown on Polo Loan Facility

The Company confirms in relation to the Loan Facility with Polo announced on 3 February 2020, it has today drawn down a further £250,000 in accordance with the terms announced thereon. The Company has utilised currently £3.2million of the £3.5million facility. This current drawdown along with existing cash balances will be sufficient to fund the Company for a further 3 months.

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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For further information:

GCM Resources plc Keith Fulton Finance Director T el: [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 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.

 

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