GCM Resources PLC - Framework Agreement with NFC
15 October 2020
GCM Resources plc
("GCM" or the "Company")
Framework Agreement with NFC
GCM Resources plc, an AIM quoted mining and energy company, announces that, further to its announcements of
Pursuant to the Framework Agreement, the Parties have agreed to establish a joint venture entity, which will be responsible for progressing and implementing the Framework Agreement. GCM and NFC shall meet on a regular basis to discuss and arrange works relating the Project, including but not limited to, the definitive feasibility study and financing. It is intended that NFC will acquire an interest of 5% of the joint venture entity from GCM based upon a valuation of the Project to be agreed upon with GCM or its affiliate or investment partner holding the balance of ownership of the Project.
Further salient terms of the Framework Agreement are:
· NFC shall facilitate to arrange financing for the Project on acceptable, market-equivalent terms;
· NFC will in principle be appointed as the exclusive engineering, procurement, construction and commissioning ("EPC") contractor for the Project and the Parties shall conclude a separate EPC framework agreement in due course; and
· The Parties agreed to enter into a Joint Development Agreement in due course regarding the next step works for developing the Project.
The Company is currently in negotiations with PowerChina with the intention to include PowerChina as a party to the Framework Agreement in due course.
The Company notes that significant progress has already been made with NFC and PowerChina under the existing MoU and that this Framework Agreement enables the Company to continue towards the formation of a strategic partnership to jointly develop the Project.
The Executive Chairman of GCM, Datuk Michael Tang PJN, stated:
"Whilst the Covid-19 pandemic has delayed our progress with the Project, we believe that it has encouraged the Government of
"We are also pleased to report that a large part of the process towards finalising our strategic partnership with NFC and PowerChina has been completed. Both NFC and PowerChina are highly respected global companies, and in becoming strategic partners to the Project, is expected to add tremendous strength and credibility to our proposal.
"I would like to thank the teams at both NFC and PowerChina for their dedication and continuing support, particularly during this global crisis, towards delivering substantial benefits for the Government of
This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014 and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.
For further information:
GCM Resources plc
+44 (0) 20 7290 1630
Strand Hanson Limited
Nominated Adviser and Broker
+44 (0) 20 7409 3494
GCM Resources plc
Tel: +44 (0) 20 7290 1630
About GCM Resources
GCM Resources plc (LON:GCM), the AIM listed mining and energy company, has identified a high quality coal resource of 572 million tonnes (JORC 2004 compliant) at the Phulbari Coal and Power Project (the Project) in north-west
Utilising the latest highly energy efficient power generating technology the Phulbari coal mine is capable of supporting power plants of up to 6,000MW. GCM is awaiting approval from the Government of
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