Business
Power Plant Consulting Agreement
Power Plant Consulting Agreement.
About this update from Gcm Resources Plc
[{"type":"text","content":"\n \nRNS Number : 5966F GCM Resources PLC 18 May 2017 \n\n18th May 2017\nGCM Resources plc\n(\"GCM\" or the \"Company\")\n(LON:GCM) \n \n2,000MW Power Plant Consulting Agreement\n \n \nGCM Resources plc (LON:GCM), a resource exploration and development company, is pleased to announce that it has entered into a consulting agreement with Dyani Corporation Limited (泰安利有限公司) (\"Consultant\", \"Dyani\"), a PRC based infrastructure advisory company. The consultancy is in relation to the advancement of the proposed 2,000MW coal fired power plant, which includes the collaboration with China Gezhouba Group International Engineering Co. Ltd (\"CGGC\"), as previously announced on 11 November 2016. \n \nSince May 2016, the Consultant has provided invaluable introduction, negotiation and advisory services to the Company on a good-faith basis, while terms of a consulting agreement were being discussed. The Consultant was instrumental in the introduction of CGGC, and the subsequent negotiation and finalisation of the Memorandum of Understanding (\"MOU\") announced on 11 November 2016. The Company would not have been able to engage nor successfully enter into the MOU with CGGC without the assistance of the Consultant. The Company considers that the relationships, skills, knowledge and expertise of the Consultant will continue to be of significant benefit in the negotiations with CGGC and other Chinese enterprises in: undertaking the necessary feasibility and evaluation studies in respect to the proposed power plant; a joint venture investment agreement; and a subsequent Engineering, Procurement, Construction and Commissioning (\"EPCC\") agreement. \n \nPrincipal terms of the consulting agreement\nUnder the terms of the consulting agreement which expires on 30 June 2018, the Consultant shall provide services to assist the Company in:\n· Procuring a preliminary feasibility study on the proposed mine mouth power plant at no external cost to GCM;\n· Negotiating and entering into a joint venture investment agreement with respect to the proposed mine mouth power plant; and\n· Negotiating and entering into an EPCC agreement or Framework EPCC agreement in relation to the proposed mine mouth power pla...