TIDMGCM
RNS Number : 0138M
GCM Resources PLC
09 January 2023
9 January 2023
GCM Resources plc
("GCM" or the "Company")
Proposed Solar Project - Joint Development Agreement
GCM Resources plc (LON: GCM), an AIM quoted mining and energy
company , is pleased to advise that it has agreed a Joint
Development Agreement ("JDA") with PowerChina International Group
Limited ("POWERCHINA"), and Dyani Corporation Ltd ("DYANI") in
relation to a proposed new greenfield solar project called the
Dinajpur Solar Power Project ("SOLAR PROJECT") which would be an
adjunct project in conjunction with the Phulbari Coal and Power
Project ("the Project").
The Parties intend to participate in the Solar Project by equity
investment and form exclusive cooperation to develop the Solar
Project on the terms and conditions of the JDA. The development
activities include all tasks required including development,
financing, construction and operation of the Solar Project, and all
activities incidental thereto, and entering into related
arrangements, documentation and agreements with relevant
authorities in Bangladesh. The Parties intend to appoint PowerChina
as EPC Contractor for the Solar Project with the terms and
conditions of the EPC Contract to be negotiated and agreed by GCM
and Dyani.
Currently the proposed project is at a conceptual stage and any
operational project would need, amongst other items, permits and
project financing. The solar project's intention would be that
should the solar project become operational that it would be
capable of providing power to support the Phulbari Coal and Power
Project and the National grid.
Under the JDA, the parties have agreed to the following salient
terms:
-- GCM, POWERCHINA, and DYANI, shall:
o Participate in the Solar Project with the interests, rights
and liabilities of the Parties within the Solar Project be in the
following percentage proportions:
-- GCM Resources plc 50 %
-- PowerChina International Group Limited: 20 %
-- Dyani Corporation Limited: 30 %
o GCM's roles and responsibilities shall include
-- Facilitate to obtain all requisite licenses and approvals/
permits from Government of Bangladesh,
-- Assist and Coordinate residents' resettlement, infrastructure
replacement and land acquisition,
-- Facilitate Powerchina to raise debt finance,
-- To provide technical input and assistance for the Project's
feasibility study report,
-- Provide details of Mining Project power requirements and land
availability schedule,
o POWERCHINA's roles and responsibilities shall include;
-- To assist with obtaining requisite licenses and approvals/
permits from Government of Bangladesh, and the Chinese
Government,
-- Complete the feasibility study report for the Project,
-- Provide technical and engineering support for the development
of the Project,
-- Lead environmental studies,
-- Lead financial planning, modelling and liaising with finance
parties,
-- Coordinate the mobilization and arrangement of the funding of
the debt portion of the project funding for the parties with
Chinese or international financial institutions,
-- Appoint technical consultant, financial advisor, tax advisor,
legal advisor,
o DYANI's roles and responsibilities shall include;
-- Coordinate the interfaces with or interactions with all the
relevant agencies in China,
-- Assist to procure all the relevant documentation and related
information as may be required from Chinese Government,
-- Assist and facilitate Powerchina to raise debt finance.
o Notwithstanding any of the provisions in the JDA, the majority
of matters shall require the unanimous written consent of the
Parties.
The JDA has a term of 12-months and does not at this stage
commit any of the parties to expend any specified sums. It is the
intention that it will be superseded, in due course, by a more
detailed working arrangement between the parties, but may be
terminated earlier under certain prescribed conditions.
Michael Tang, CEO of GCM, commented : "We are pleased to
announce our evolving relationship with POWERCHINA, and the
exciting prospect of being able to pursue the groundwork for a
Solar Project within the Phulbari Coal and Power Project. GCM and
its mine and power plant development partners look very much
forward to further working with POWERCHINA to integrate the Solar
Project with the existing Project and unleash further significant
benefits for Bangladesh."
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014 which is part of UK law by virtue of
the European Union (withdrawal) Act 2018. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
For further information:
GCM Resources plc WH Ireland Ltd
Keith Fulton James Joyce
Finance Director Andrew De Andrade
+44 (0) 20 7290 1630 +44 (0) 20 7220 1666
GCM Resources plc
Tel: +44 (0) 20 7290 1630
info@gcmplc.com; 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 could have the capacity to
support some 6,600MW. GCM requires approval from the Government of
Bangladesh in order to develop the Project. The Company has a
strategy of linking the Company's mine proposal to supplying coal
to the Government of Bangladesh's existing and in the pipeline
coal-fired power plants and / or power plants developed development
partners. Together with credible, internationally recognised
strategic development partners, GCM aims to deliver a practical
power solution to provide the cheapest coal-fired electricity in
the country, in a manner amenable to the Government of
Bangladesh.
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