Sale of Aura JV

RNS Number : 6783U

GCM Resources PLC

20 October 2010

 



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  [phone] Graham Taggart Finance Director [phone]	Pelham Bell Pottinger Charles Vivian 44 (0)207 861 3126 Klara Kaczmarek [phone]
J.P. Morgan Cazenove Nominated Adviser Michael Wentworth-Stanley [phone]

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

 

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