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Dhaka Tribune

Asia Energy’s parent company signs £3m loan agreement

Update : 01 Jun 2015, 07:15 PM

GCM Resources plc, the parent company of Asia Energy Corporation Bangladesh Pty Ltd, has entered into a convertible loan agreement with a Malaysian-based investor for a two year unsecured financing facility of £3m with no interest payable. 

The agreement was reached last Friday between the UK-based resource exploration and development company and Malaysia-based investor Revenue Anchor Sdn Bhd, said a press release.

Asia Energy is planning to develop and operate a world class open pit coal mine in its Phulbari Coal Project in Dinajpur.

“It is with great pleasure that I am welcoming Revenue Anchor Sdn Bhd as an important financing partner for GCM. The funding we have secured will be sufficient for GCM to pursue its goals of furthering the Phulbari Coal Project for the foreseeable future,” said Michael Tang, executive chairman of GCM Resources.

Under the agreement, the lender has the right to convert the outstanding balance of the Loan any time at a subscription price of 11p (penny) per share provided that the lender’s interest does not reach or exceed 30% of the company’s issued capital. 

If the lender exercises its right to convert, following conversion the shares are immediately locked-up and may not be disposed of for a period of two years from the date of conversion. 

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