UK-based GCM Resources plc, the parent company of Asia Energy Corporation Bangladesh Pty Ltd, has secured a two-year £3 million convertible loan facility for Phulbari Coal Project which may be drawn down as and when required.
The loan agreement was signed with Malaysian-based investor Revenue Anchor Sdn Bhd, which has agreed to assist in financially supporting GCM’s activities as it continues to pursue approval for the project.
GCM, in a press release yesterday, announced the preliminary results for the year ended June 30, 2015.
According to the release, GCM had drawn down £0.2 million from the convertible loan facility as of June 30, 2015, and £0.51 million as of November 19, 2015.
The company incurred a loss of £0.9 million for the year ended June 30, 2015, compared to £1.3 million last financial year and £3.2 million in 2013.
Project related expenditures of £0.6 million for the year was kept below £0.8 million in expenditures in 2014.
GCM has identified a coal resource of 572 million tonnes at the Phulbari Coal Project in north-west Bangladesh. It is awaiting approval from the Bangladesh government to develop the project.
In the release, Executive Chairman Michael Tang said: “The last twelve months have been challenging for the junior mining sector as commodity markets continue to deteriorate and raising new funding has become particularly difficult for any mining company that is not producing.
“In contrast to the decline in global demand for coal, Bangladesh, where GCM’s operations are located, is expected to see a significant increase in demand for high quality thermal coal in-country as the government continues to restructure the country’s power sector towards coal.
“While achieving approval continues to be a challenge, the board believes that it is in the best interests of all stakeholders that the project is developed. To this end the board’s strategy is to present the project to the satisfaction of the Government of Bangladesh and to secure an agreement that meets the objectives of both parties.”
