GCM Resources plc announced that it has agreed a Joint Venture Agreement and a definitive Engineering, Procurement and Construction Contract ("EPC Contract") with Power Construction Corporation of China Ltd. ("POWERCHINA") for the development of 2×1,000MW Coal-Fired Power Plant Project ("Power Plant") at the site of the Company's proposed coal mine in North-West Bangladesh. The 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, providing an estimated USD 12.5 billion in foreign investment. Under the terms of the JV Agreement, GCM shall be the lead party on a newly created joint venture company ("JVC") to own the Power Plant.

Subject to a mutually agreed valuation of the Power Plant and investment appraisal, the Company will be entitled to an 80% interest in the 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 Power Plant. The JV Agreement has a term of 12 months, with the intention that it shall be superseded by a definitive shareholder agreement between the parties, but may be terminated earlier under prescribed conditions.