Business
MOU Extension & Drawdown on Existing Polo Loan
MOU Extension & Drawdown on Existing Polo Loan.
About this update from Gcm Resources Plc
[{"type":"text","content":"\n\n28 November 2023\n \nGCM Resources plc\n(\"GCM\" or the \"Company\")\n(AIM:GCM) \n \nMOU Extension - Phulbari Coal Mine Development &\nDrawdown Request on Existing Polo Resources Ltd Loan Facility\n \n \nMOU Extension - Phulbari Coal Mine Development\nGCM Resources plc (LON:GCM), an AIM quoted mining and energy company advises that, further to its announcements of 23 November 2021, June 2021 and 12 December 2022, Power Construction Corporation of China, Ltd. (\"PowerChina\") it has agreed an extension for a period of a further 12 months from 6 December 2023 to 6 December 2024 on the same terms as the previous memorandum of understanding (\"MoU\") which is primarily focused on the Phulbari coal mine development. This will allow PowerChina and GCM to continue to work on determining the modality for PowerChina to become a Mine Development Partner, subject to the approval of PowerChina internal compliance and all other relevant regulatory agencies.\n \nUnder the MoU, PowerChina and GCM will discuss and negotiate a mutually agreed business relationship to partner each other in developing the proposed coal mine based on the world-class high quality coal resource of 572 million tonnes (JORC 2004 compliant) at the Phulbari Coal and Power Project in North-West Bangladesh (the \"Project\"). These discussions will cover key areas of finance, project development and mining operations.\n \nIt has been reported in Bangladesh that the government is working on new plans for energy supply to feed its diverse range of power plants. The economic pressures, driven largely by the vagaries of the international energy market, appear to be driving a re-focus towards developing domestic energy resources. Bangladesh's currently installed coal-fired power plants of just over 6,000 MW, already can consume virtually all the planned Phulbari coal mine's production and the Government's plan is to double this capacity. GCM remains confident that the Project will help the Country move away from an almost total dependance on expensive imported energy.\n \nDrawdown Request on Existing Polo Resources Ltd Loan Facility\nThe Company announced on 14 June 2023 that it needed to carry out an additional fundraise before the end of 2023 to fund its working capital into 2024. In relation to the Loan F...