GCM Resources plc (LSE:GCM) has conditionally raised approximately £1.25 million through the issue of 15,244,000 new ordinary shares at 8.2 pence each. The placing price represents an 18% discount to the latest closing price and equates to around 4.14% of the company’s enlarged share capital. The fundraising was arranged by Clear Capital Markets Limited, acting as sole bookrunner.
Proceeds will be directed toward general working capital requirements, including corporate overheads, advisory and legal costs, and other administrative expenses.
The additional funding is aimed at supporting continued advancement of the Phulbari Coal and Power Project, which remains dependent on securing necessary approvals from the Government of Bangladesh. Management has highlighted what it sees as a shifting policy backdrop in Bangladesh, with increased emphasis on utilising domestic natural resources. Upcoming national elections are also viewed as a potential catalyst, should the regulatory and political environment evolve in a way that favours project progression.
From an investment perspective, the company’s profile remains constrained by limited financial traction, including an absence of revenue, ongoing losses and sustained negative operating and free cash flow. Technical indicators, however, have shown relative strength, with positive price momentum compared to key moving averages, although overbought signals may cap near-term upside. Valuation metrics continue to reflect the lack of earnings and dividend support.
More about GCM Resources
GCM Resources is an AIM-listed exploration and development company focused on the Phulbari Coal and Power Project in north-west Bangladesh. The project hosts a JORC-compliant coal resource of 572 million tonnes. The company’s strategy centres on deploying high-efficiency power generation technology to deliver competitively priced coal-fired electricity, working alongside the Bangladeshi government and potential strategic partners.
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