TIDMPOL
RNS Number : 6502I
Polo Resources Limited
27 November 2018
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.
27 November 2018
Polo Resources Limited
("Polo" or the "Company")
GCM RESOURCES PLC - INVESTMENT UPDATE
MOU with PowerChina
Polo Resources Limited (AIM: POL), the multi-sector investment
company with interests in oil, gold, coal, copper, phosphate,
lithium, iron and vanadium, notes that its 19.84% investee company
GCM Resources Plc ("GCM") (AIM: GCM), has advised that it has
agreed a memorandum of understanding ("MOU") with Power
Construction Corporation of China, Ltd ("PowerChina").
The MOU embodies the principles of a cooperative relationship
between the two parties to develop the Company's proposed coal mine
as well as power plants generating up to 4,000MW at the mine site,
and sets out the steps towards a future Joint Development
Agreement, obtaining approval from the Government of Bangladesh and
subsequent development of both the mine and power plants generating
4,000MW.
The principal terms of the MOU are as follows:
-- Activities towards development are identified as being
investment, planning, approval, financing, ownership, design,
construction and operation of the proposed mine and power
plants;
-- The equity holdings of the coal mine and power plants
generating 4,000MW shall be agreed in a future Joint Development
Agreement;
-- GCM shall assist PowerChina in providing technical and
regulatory assistance in completing their feasibility and viability
studies;
-- GCM shall permit PowerChina to form an investment consortium
with other investors acceptable to GCM;
-- PowerChina will undertake feasibility and viability studies
of the integrated coal mine and power plants generating
4,000MW;
-- PowerChina will facilitate the inclusion of the Phulbari Coal
and Power Project as a One Belt, One Road Initiative of the
People's Republic of China;
-- The MOU shall be valid for six months, but shall expire in
the event that the parties undertake a new agreement which
supersedes the MOU, or if either party decides to terminate the
agreement, giving 60 days' notice; and
-- The MOU sets out a projected timeframe of concluding a Joint
Development Agreement with the parties by 31 December 2018, and
subsequently submitting a formal proposal to the Government of
Bangladesh by 28 February 2019.
PowerChina is a State-owned Key Enterprise of People's Republic
of China, and is a world-leading integrated engineering
construction group. In 2018, PowerChina ranked 182nd among Fortune
Global 500, 41st among Top 500 Enterprises of China, came 6th in
the list of the world's 250 largest global contractors and placed
2nd among top 150 engineering design companies worldwide according
to Engineering News-Report.
The Executive Chairman of GCM, Datuk Michael Tang PJN,
stated:
"I am delighted to have concluded this MOU with PowerChina, our
new highly esteemed strategic partner and would like to thank them
for their support and enthusiasm in finalising the agreement. GCM's
strategy is to present a holistic power solution to the Government
of Bangladesh which can generate 6,000MW for the country. This MOU
is another strong step in this direction, and I am excited by the
momentum which is being built towards our goals. We are confident
that the Phulbari Coal and Power Project will deliver substantial
benefits for the Government, the people of Bangladesh and our
shareholders."
Mr. Pan Dengyu, Vice President of PowerChina Eurasia and the
authorized person for this Project, stated:
"PowerChina is excited to be partnering with GCM to deliver an
integrated mine and power plant generation for the people of
Bangladesh. We look forward to working with Datuk Michael Tang PJN
and his team to deliver a world class proposal acceptable to the
Government of Bangladesh."
The full details of this announcement can be found at
http://www.gcmplc.com/
For further information, please contact:
Polo Resources Limited
- Kudzayi Denenga, Investor Relations +27 (0) 787 312 919
Allenby Capital Limited (Nominated
adviser & broker)
- John Depasquale +44 (0)20 3328 5657
Blytheweigh (Public relations)
- Julia Tilley, Fergus Cowan +44 (0) 207 138 3204
About the Company
Polo Resources Limited is a multi-sector investment company
focused on investing in undervalued companies and projects with
strong fundamentals and attractive growth prospects. For complete
details on Polo, please refer to: www.poloresources.com.
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END
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