LONDON (ShareCast) - (Sharecast News) - GCM Resources announced a new consulting agreement with DG Infratech (DGI) on Tuesday, aimed at securing government consent in Bangladesh to develop the Phulbari Coal and Power Project, which contains a JORC 2004-compliant coal resource of 572 million tonnes.
The AIM-traded firm said the agreement, which expired on 31 December 2023, had been renewed until 31 December 2025 and now included plans for an adjunct solar power park of up to 4,500MW capacity at the project site.

Under the renewed terms, DGI would provide advisory, management, lobbying, and consultancy services to secure necessary approvals and stakeholder cooperation.

The agreement included a monthly retainer fee of £12,000, paid quarterly in arrears through the issuance of new ordinary shares.

For 2024, GCM said it would issue a total of 4,179,248 new ordinary shares to DGI for the services rendered.

Additionally, the agreement included share-based success fees contingent on achieving key project milestones.

The fees would include up to 15% of GCM's issued share capital in total, allocated across milestones such as approval of the coal mine's scheme of development, approvals for power plants and the solar park, and the start of coal mining operations.

Any success fee would also extend the agreement by an additional 60 months.

DGI's shareholding would remain below 30% of the company's ISC, and shares issued as part of the agreement were subject to a six-month lock-up period, excluding the monthly retainer shares.

Following the latest issuance, DGI would hold 14,506,518 shares, representing 4.84% of GCM's issued share capital.

GCM also clarified an administrative error from a March 2022 fundraise, resulting in an additional issuance of 249 shares.

In total, 4,179,497 new ordinary shares would be admitted to trading on AIM, effective on or around 3 February.

Post-admission, GCM's issued share capital would consist of 299,467,803 ordinary shares.

At 1318 GMT, shares in GCM Resources were up 15.36% at 1.62p.

Reporting by Josh White for Sharecast.com.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE