Resignation of Nominated Adviser and Broker and MOU Extension
Resignation of Nominated Adviser and Broker
GCM Resources plc, an AIM-quoted mining and energy company, announces that the Company has received notice from Strand Hanson Limited, confirming that it has formally resigned as Nominated Adviser and Broker to the Company, with such resignation to take effect on 6 January 2021.
Pursuant to Rule 1 of the AIM Rules for Companies, if a replacement Nominated Adviser is not appointed by 6 January 2021, the Company’s shares will be suspended from trading on AIM and, if a replacement Nominated Adviser is not appointed by 6 February 2021, admission of the Company’s shares to trading on AIM will be cancelled.
The Company is in discussions with a potential replacement nominated adviser and broker and is currently undergoing the required due diligence process with the proposed party, targeting to complete the process prior to 6 January 2021. The Company will keep the market updated on progress in this regard.
Michael Tang, Executive Chairman of GCM, commented: “We have been working diligently to appoint a new adviser to achieve the maintenance of our AIM listing and we will continue to extend every effort to complete these appointments before 6 January 2021.”
The Company advises that, further to its announcement of 14 April 2020, Power Construction Corporation of China, Ltd. (“PowerChina”) has requested an extension of the memorandum of understanding (“MoU”) for a period of 6 months to 6 June 2021 on the same terms as the previous MoU, to which the Company has agreed. This is to enable PowerChina to have a higher participation in the Project as part of the mine mouth integrated power plants, subject to the approval of PowerChina ‘ s internal compliance and all other relevant regulatory agencies.
The Company notes that significant progress has already been made with China Nonferrous Metal Industry’s Foreign Engineering and Construction Co., Ltd. (“NFC”) and PowerChina under the MoU and that this extension will enable the Company to continue towards the formation of a strategic partnership to jointly develop the Company’s proposed world class high grade coal resource of 572 million tonnes (JORC 2004 compliant) at the Phulbari Coal and Power Project in North-West Bangladesh (the ” Project “).
As announced on 14 October 2020, the Company has entered into a Framework Agreement with NFC, and this extension of the MOU will enable the Company to continue to work with PowerChina towards a Framework Agreement.
Michael Tang, Executive Chairman of GCM, commented: “We are pleased to report that agreement of an extension of the MOU with PowerChina continues our process towards finalising our strategic partnership with NFC and PowerChina. Both NFC and PowerChina are highly respected global companies and, in becoming strategic partners to the Project, is expected by the Board to add tremendous strength and credibility to our project.
“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 Bangladesh, its people and our stakeholders.”
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