TIDMPOL
RNS Number : 0012T
Polo Resources Limited
15 March 2019
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.
15 March 2019
Polo Resources Limited
("Polo" or the "Company")
GCM RESOURCES PLC - INVESTMENT UPDATE
Second Joint Venture 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 17.83% investee company
GCM Resources Plc ("GCM") (AIM: GCM), has announced that it has
agreed a second Joint Venture Agreement (the "Second JV Agreement")
with Power Construction Corporation of China, Ltd ("POWERCHINA")
for the development of an additional 2×1,000MW Coal-Fired Power
Plant Project (the "Additional Power Plant") at the site of the
company's proposed coal mine in North-West Bangladesh. The Second
JV Agreement is in addition to the initial Joint Venture agreement
signed with POWERCHINA as announced on 17 January 2019 (the "First
JV Agreement").
The Additional Power Plant proposed with POWERCHINA is part of
the company's broader strategy to generate 6,000MW of low-cost
electricity for the Bangladesh market utilising domestic coal (the
"Project"). The Project, providing an estimated $14.5bn in foreign
investment, is anticipated to be a catalyst for local, regional and
national growth.
About POWERCHINA
POWERCHINA is a central government owned key enterprise of the
People's Republic of China, and is a world-leading integrated
engineering construction group. In 2018, POWERCHINA ranked 182nd
among the Fortune Global 500, 2nd among the top 150 global
engineering design companies, 41st among the Top 500 Enterprises of
China and 6th among the world's 250 largest global contractors,
according to Engineering News-Report. POWERCHINA has 373 overseas
offices or branches in 116 countries and business operations in 125
countries and regions. POWERCHINA has completed power plants with
242.75GW of installed capacity and has majority ownership of power
plants with 14,402.4MW around the world.
In Bangladesh, POWERCHINA is an investor in and contractor for
three large projects, namely, two coal fired power plants with a
combined capacity of 1,670MW and a joint venture for the Dhaka
Elevated Expressway.
Second JV Agreement
The terms of the Second JV Agreement are identical to the First
JV Agreement. GCM shall be the lead party on a newly created joint
venture company ("JVC2") to own the Additional Power Plant. Subject
to a mutually agreed valuation of the Additional Power Plant and
investment appraisal, the company will be entitled to an 80%
interest in the Additional Power Plant, with POWERCHINA receiving
the remaining 20%. The salient roles and responsibilities of each
party are:
-- GCM shall be responsible for obtaining the necessary
approvals from the Government of Bangladesh and facilitate
preparation of the Environmental Impact Assessment;
-- POWERCHINA shall be responsible for conducting a Feasibility
Study and facilitate the inclusion of the Project as a One Belt,
One Road Initiative of the People's Republic of China; and
-- Both parties shall assist in obtaining financing for the
development of the Additional Power Plant.
The Second JV Agreement has a term of 12 months, with the
intention that it shall be superseded by a definitive shareholder
agreement between the parties, but may be terminated earlier under
prescribed conditions.
The Executive Chairman of GCM, Datuk Michael Tang PJN,
stated:
"I am delighted that the second the JV Agreement has now been
completed and would like to express my sincere gratitude to the
POWERCHINA team for their support and demonstration of commitment
to the Company's integrated mine and power plant project.
By finalising this Second JV Agreement, we are now at a stage
where partners have been found for all of the proposed power plants
of 6,000MW in total, and are parties to joint venture agreements. I
anticipate that this will facilitate the submission of the
Company's proposal to the Government of Bangladesh, and am pleased
with the progress being made."
Mr. Pan Dengyu, Vice President of POWERCHINA Eurasia,
stated:
"POWERCHINA is delighted to have signed the Second JV Agreement
and look forward to assisting GCM Resources plc in delivering the
integrated mine and power plant that is beneficial and acceptable
to the Government of Bangladesh. POWERCHINA has made a strong
contribution to Bangladesh, having completed 10 infrastructure
projects including fives power plants totaling US$750m and 12
current projects amounting to US$4.6 billion including two coal
fired power plants of 1,670MW. As the Additional Power Plant
contractor, we are committed to a positive relationship with the
community and to construct an environmentally friendly power plant
for the benefit of the local people."
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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