GCM Resources PLC Power Plant Consulting Agreement - Update (2293T)
02 July 2018 - 6:23PM
UK Regulatory
TIDMGCM
RNS Number : 2293T
GCM Resources PLC
02 July 2018
2 July 2018
GCM Resources plc
("GCM" or the "Company")
(AIM:GCM)
Power Plant Consulting Agreement - Update
GCM Resources plc ("GCM" or the "Company"), a London based
resource exploration and development company, is pleased to provide
an update in regards to the consultancy agreement ("Agreement")
announced on 18 May 2017 with Dyani Corporation Limited
("Consultant") which expired on 30 June 2018.
The Company advises that discussions are ongoing with the
Consultant to either extend or enter into a new agreement subject
to achieving satisfactory terms. The intention of such agreement
would be to facilitate the advancement of the Company's
relationship with China Gezhouba Group International Engineering
Co. Ltd ("CGGC") and to solicit further internationally recognised
strategic partners for mine development and/or further power
plants, and thus significantly enhance the Company's prospects in
achieving its objectives. To this end the Consultant has
recommended a number of large credible parties who have expressed
interest in partnering with GCM.
The Company recognises the valuable contribution made by the
Consultant to-date. GCM has achieved a strong strategic partnership
with CGGC, for the proposed 2,000MW mine-mouth thermal power plant
at GCM's proposed coal mine in North-West Bangladesh ("Power
Plant").
CGGC is the main international business company of both China
Gezhouba Group Corporation and China Energy Engineering Co. Ltd
("Energy China"), of which both are State Owned Entities of the
People's Republic of China. CGGC is a leading implementer of
China's 'Belt & Road' Initiative and seeks projects that are in
line with this initiative and that promote social progress.
As previously announced, after completing a technical
pre-feasibility study on the proposed Power Plant in July 2017,
CGGC and GCM have since agreed the roles and responsibilities
between the two parties:
-- CGGC has been awarded the right to engineer, procure,
construct, and commission ("EPC") the proposed Power Plant, subject
to a definitive EPC contract;
-- CGGC shall procure the financing for the development of the
proposed mine mouth power plant with GCM's assistance;
-- CGGC (or its affiliate or investment partner) shall invest up
to 30% in the power plant, subject to approval by Chinese
authorities; and
-- CGGC shall assist the Company in pursuing the necessary
approvals from the Bangladesh authorities for development of both
the proposed coal mine and Power Plant.
Datuk Michael Tang PJN, Executive Chairman stated "I would like
to express my appreciation for the valuable work undertaken by
Dyani Corporation Limited for the benefit of GCM. The CGGC
relationship is an important part of a broader strategy of
combining the Company's mine proposal with up to 6,000MW of power
generation, together with credible, internationally recognised
strategic partners, and thus delivering a practical power solution
that is amenable to the Government of Bangladesh."
For further information:
GCM Resources plc Northland Capital Partners Ltd
James Hobson Nominated Adviser and Broker
Finance Director Tom Price
+44 (0) 20 7290 1630 Jamie Spotswood
+44 (0) 203 861 6625
GCM Resources plc
Tel: +44 (0) 20 7290 1630
info@gcmplc.com; www.gcmplc.com
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END
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