Source - RNS
RNS Number : 6974K
GCM Resources PLC
23 September 2016
 

23th September 2016

GCM Resources plc

("GCM" or the "Company")

(AIM:GCM) 

 

Press speculation

 

GCM Resources plc ("GCM" or the "Company"), a London based resource exploration and development company, has noted the press speculation in the Bangladesh media in relation to the Barapukuria coal mine in Bangladesh, a mine site which is unrelated to the Company,  and comments attributed to the Energy and Mineral Resources division of the Government of Bangladesh.

 

The reports suggest that the Energy and Mineral Resources Division of the Government of Bangladesh ("Government") has decided not to proceed with open pit mining at the Barapukuria coal mine site. One report also insinuates that the Government's decision also affects the Company's Phulbari Coal Project.

 

While GCM is in the process of verifying the accuracy of the media reports, the Company wishes to advise the following:

1)     The press speculation is predominantly in relation to the Barapukuria coal mine, which is unrelated to the Company.

2)     The Company, through its subsidiaries, has a legally enforceable contract with the Government of Bangladesh which gives it the right to explore, develop and mine in respect to the licence areas. GCM is awaiting Government approval of the Scheme of Development to proceed with mine development.

3)     GCM has received no notification from the Government of any change to its contract.

 

The Company estimates the Phulbari Coal Project will deliver over $2bn of inward investment into Bangladesh, supply high quality thermal coal to support up to 4,000MW to Bangladesh, while providing US$7bn of revenue to the Government over the Project's life. Within the north-west region of Bangladesh, development of the Project is expected to create 17,000 jobs, develop new industries and increase agricultural production by facilitating year round irrigation, through water and electricity availability.

 

A detailed Definitive Feasibility Study and Environmental and Social Impact Assessment has been prepared by internationally recognised consultants to achieve the optimum amount of coal extraction while minimising environmental impact and effectively addressing water management issues.

 

 

 

For further information:

GCM Resources plc

James Hobson

CFO & Company Secretary

 +44 (0) 20 7290 1630

 

Bell Pottinger

Greg Wood

+44 (0) 20 3772 2500

 

 

ZAI Corporate Finance Ltd

Nominated Adviser and Broker

John Treacy

+44 (0) 20 7060 2220


 

GCM Resources plc


Tel: +44 (0) 20 7290 1630


[email protected]; www.gcmplc.com


 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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