Business
MOU with PowerChina
MOU with PowerChina.
About this update from Gcm Resources Plc
[{"type":"text","content":"\n \nRNS Number : 5530I GCM Resources PLC 27 November 2018 \n\n27th November 2018\n \nGCM Resources plc\n(\"GCM\" or the \"Company\")\n(AIM:GCM) \n \nMOU with PowerChina\n \nGCM Resources plc (\"GCM\" or the \"Company\"), an AIM quoted mining and energy company, is pleased to advise that it has agreed a memorandum of understanding (\"MOU\") with Power Construction Corporation of China, Ltd (\"PowerChina\").\n \nThe MOU embodies the principles of a cooperative relationship between the two parties to develop the Company's proposed coal mine as well as power plants generating up to 4,000MW at the mine site, and sets out the steps towards a future Joint Development Agreement, obtaining approval from the Government of Bangladesh and subsequent development of both the mine and power plants generating 4,000MW.\n \nThe principal terms of the MOU are as follows:\n· Activities towards development are identified as being investment, planning, approval, financing, ownership, design, construction and operation of the proposed mine and power plants;\n· The equity holdings of the coal mine and power plants generating 4,000MW shall be agreed in a future Joint Development Agreement;\n· GCM shall assist PowerChina in providing technical and regulatory assistance in completing their feasibility and viability studies;\n· GCM shall permit PowerChina to form an investment consortium with other investors acceptable to GCM;\n· PowerChina will undertake feasibility and viability studies of the integrated coal mine and power plants generating 4,000MW;\n· PowerChina will facilitate the inclusion of the Phulbari Coal and Power Project as a One Belt, One Road Initiative of the People's Republic of China;\n· The MOU shall be valid for six months, but shall expire in the event that the parties undertake a new agreement which supersedes the MOU, or if either party decides to terminate the agreement, giving 60 days' notice; and\n· The MOU sets out a projected timeframe of concluding a Joint Development Agreement with the parties by 31 December 2018, and subsequently submitting a formal proposal to the Government of Banglades...