GCM Resources PLC Further re Press Speculation (9825K)
27 September 2016 - 3:03PM
UK Regulatory
TIDMGCM
RNS Number : 9825K
GCM Resources PLC
27 September 2016
27(th) September 2016
GCM Resources plc
("GCM" or the "Company")
(AIM:GCM)
Press speculation update
GCM Resources plc ("GCM" or the "Company"), a London based
resource exploration and development company, is pleased to provide
further information in respect to the press speculation
announcement on 23 September 2016.
The Company's investigation has found that press speculation in
the Bangladesh media of an alleged decision by the Government of
Bangladesh ("Government") on the mining method at Barapukuria coal
mine was inaccurate and misleading.
GCM has obtained feedback from sources from within Government
and the Bangladesh media which confirms that no decision has been
made on whether the Government's Barapukuria Coal Mining Company
Limited, which is currently mining coal in the Barapukuria coal
basin through underground mining, should adopt the high coal
production open pit mining method. In addition it was found that
there were no grounds to suggest that the Company's Phulbari Coal
Project ("Project") was impacted in any way.
Since the announcement on Friday 23 September 2016, further
Bangladesh media articles have accurately reported that a
technically orientated progress meeting was held in government
circles but no decisions were made regarding mining methods. The
Company is deeply concerned regarding the negative impact that
unsubstantiated and speculative media reporting can have on its and
its stakeholders' image, reputation and financial position and
consequently it has instructed its lawyers to issue a legal notice
to a media outlet to protect its interests.
As stated in the Company's announcement on Friday 23 September
2016, GCM through its subsidiary has a legally enforceable contract
with the Government of Bangladesh which gives it the right to
explore, develop and mine coal in northern Bangladesh. Under the
purview of the aforementioned Contract it successfully explored the
Phulbari coal basin and provided the Government with a Scheme of
Development, supported by a detailed Environmental and Social
Impact Assessment, for developing a high production open pit coal
mine. The Company is awaiting Government approval of the Scheme of
Development to proceed with mine development and has received no
notification from the Government of any changes that would impact
on its Contract and ensuing rights.
The Company was pleased that Bangladesh's Honourable Prime
Minister Sheikh Hasina addressed the nation via television on 27
August 2016 where she displayed pictures and referred to successful
open coal mining and associated power generation in Germany's
Cologne area. She shared the successful environmental management of
these operations, including water management and stated that
communities and wildlife happily lived in close proximity to the
mines and power plants. The Company wishes to note that the Scheme
of Development for the Phulbari Coal Project adopts the proven best
practices of the Cologne open pit coal mines, which are
significantly larger in scale, in respect of water management
issues and GCM's international team of advisers included
consultants from RWE Cologne.
GCM is confident that a developed Phulbari Coal Project will
contribute towards significant long term economic growth and social
development by supplying high quality thermal coal for up to
4,000MW of lower cost power while generating many thousands of
jobs, and that it is in the best interests of the Government, the
nation and the local community that the Project proceed as quickly
as possible.
For further information:
GCM Resources plc Bell Pottinger
James Hobson Greg Wood
CFO & Company Secretary +44 (0) 20 3772 2500
+44 (0) 20 7290 1630
ZAI Corporate Finance
Ltd
Nominated Adviser and
Broker
John Treacy
+44 (0) 20 7060 2220
GCM Resources plc
Tel: +44 (0) 20 7290 1630
info@gcmplc.com; www.gcmplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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September 27, 2016 10:03 ET (14:03 GMT)