GCM Resources PLC Increase in Polo Facility to £3.5 million (7143B)
February 03 2020 - 2:30AM
UK Regulatory
TIDMGCM
RNS Number : 7143B
GCM Resources PLC
03 February 2020
3 February 2020
GCM Resources plc
("GCM" or the "Company")
Increase in Polo Facility to GBP3.5 million
GCM Resources plc (LON:GCM), an AIM quoted mining and energy
company, is pleased to announce that it has agreed a GBP1.2 million
increase to its existing loan facility of GBP2.3 million with Polo
Resources Limited (AIM: POL) ("Polo") (the "Polo Facility").
Prior to this amendment, the Polo Facility allowed the Company
to borrow up to GBP2.3 million, to be repaid within 90 days upon
request and attracting an interest rate of 12% per annum. As set
out in the Company's Annual Report and Accounts for the year ended
30 June 2019, the existing Polo Facility had been fully drawn down.
The revised terms provide for an increase in the Polo Facility
amount by GBP1.2 million (up to an aggregate of GBP3.5 million),
which can be drawn down by the Company in equal quarterly
instalments of GBP300,000. As set out in the Company's
announcement, of 30 November 2018, Polo will have the right to
convert the outstanding loan balance and accrued interest to new
ordinary shares of 10p each in the Company's capital ("Ordinary
Shares") at a price of 11p per share, within 14 days upon request.
Any issue of new Ordinary Shares to the Polo is conditional upon
its interest, together with the interest of any parties with which
it is in concert, remaining below 30% of the Company's issued share
capital. All other principal terms of the Polo Facility remain
unchanged.
Use of funds
As announced on 13 January 2020, in-line with the Company's
strategy, GCM has agreed the extension of the Memorandum of
Understanding ("MOU") with Power Construction Corporation of China,
Ltd and China Nonferrous Metal Industry's Foreign Engineering and
Construction Co., Ltd. for three months. On the same date, the
Company announced the agreed the extension of the Joint Venture
Agreement ("JVA") and definitive Engineering, Procurement and
Construction Contract ("EPC Contract") with PowerChina, for a
further 12 months, to 17 January 2021.
This increased debt funding will be used by the Company in
progressing the strategic partnerships for the development of the
proposed coal mine as well as for general working capital
purposes.
Related Party Transaction
As Polo is currently a substantial shareholder of the Company,
the increase in the Polo Facility is deemed to be a related party
transaction for the purposes of Rule 13 of the AIM Rules. The
independent directors, being Mohd Najib Bin Abdul Aziz and Keith
Fulton, consider, having consulted with the Company's nominated
adviser, Strand Hanson Limited, that the terms of the transaction
are fair and reasonable insofar as its shareholders are
concerned.
2019 Annual General Meeting ("AGM")
As announced on 18 December 2019, it was the Company's intention
to hold the AGM before 29 February 2020. The Company regrets to
advise its AGM has been further delayed and confirms that the
Board's current intention is to send out a notice of AGM, to be
held before 31 March 2020, shortly.
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 Strand Hanson Limited
Keith Fulton Nominated Adviser and Broker
Finance Director Stuart Faulkner
+44 (0) 20 7290 1630 Rory Murphy
James Dance
+44 (0) 20 7409 3494
GCM Resources plc
Tel: +44 (0) 20 7290 1630
info@gcmplc.com; www.gcmplc.com
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 Bangladesh.
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 Bangladesh to develop the Project. The Company has a
strategy of combining the Company's mine proposal with up to
6,000MW of power generation, together with credible,
internationally recognised strategic partners. GCM aims to deliver
a practical power solution to provide the cheapest electricity in
the country, in a manner amenable to the Government of
Bangladesh.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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