GCM Resources' shares boosted by Dyani agreement negotiations

GCM Resources saw its shares boosted on Monday following news that the company is in talks with Dyani Corporation Limited for a new consultancy agreement.

The AIM-traded resource exploration and development firm’s consultancy agreement with Dyani expired on 30 June but a new agreement is being sought to facilitate the advancement of the company's relationship with China Gezhouba Group International Engineering Co. Ltd (CGGC).

Furthermore, a statement from GCM said its board hoped a new agreement would "solicit further internationally recognised strategic partners for mine development," with a view to further power plants and enhancement of the company's prospects in achieving objectives.

Datuk Michael Tang, executive chairman of GCM, said: "The CGGC relationship is an important part of a broader strategy of combining the company's mine proposal with up to 6,000MW of power generation, together with credible, internationally recognised strategic partners, and thus delivering a practical power solution that is amenable to the government of Bangladesh."

CGGC is a leading implementer of China's 'Belt & Road' Initiative and seeks projects that are in line with this initiative and that promote social progress, such as GCM’s proposed 2,000MW mine-mouth thermal power plant in North-West Bangladesh.

CGGC is an international arm of China Gezhouba Group Corporation and China Energy Engineering Co. Ltd, which are both state owned entities of the People's Republic of China.

The company reports that Dyani has already recommended a number of large credible parties who have expressed interest in partnering with GCM.

As of 1218 BST, GCM Resources’ shares were up 9.25% at 26.88p.