GCM Resources raises £2.13m for Phulbari development

Mining and energy company GCM Resources raised £2.13m on Thursday, to be spent on developing its Phulbari coal and power project in Bangladesh.

The AIM-traded firm said the money consisted of a placing of 25,291,828 shares and a subscription for 16,171,777 shares at a price of 5.14p each - a discount of 36.9% to the closing mid-market price on 1 March.

It said the issue was within its existing allotment authorities, and equated to around 30.1% of its currently issued share capital.

The board said the funds raised would primarily be used for development capital on GCM’s high-quality coal resource of 572 million tonnes at the Phulbari coal and power project in north-west Bangladesh.

It would also provide the company with sufficient funds to cover its corporate operating expenses through to the second quarter of 2023.

“I am pleased that we are able to announce this successful fundraising, with new and existing investors, to provide funds for our development over the next year,” said chief executive officer Datuk Michael Tang.

“I look forward to providing further updates in due course in relation to progress with the Phulbari coal and power project.”

At 1630 GMT, shares in GCM Resources were up 4.36% at 5.74p.