GCM Resources PLC Press Speculation (6974K)

TIDMGCM

RNS Number : 6974K

GCM Resources PLC

23 September 2016

23(th) 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          Bell Pottinger 
  James Hobson               Greg Wood 
  CFO & Company Secretary    [phone] 
  [phone] 
 ZAI Corporate Finance 
  Ltd 
  Nominated Adviser and 
  Broker 
  John Treacy 
  [phone] 
 
 
 GCM Resources plc 
 Tel: [phone] 
 [e-mail]; www.gcmplc.com 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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September 23, 2016 07:16 ET (11:16 GMT)