GCM Resources PLC on Friday said it has conditionally raised £1.0 million through a placing of new shares.

GCM is a mining company focused on the Phulbari coal and power project in Bangladesh.

The company said the placing is for 33.3 million new shares at 3.00 pence each.

It said the proceeds would be used to advance the coal and power project in Bangladesh, which remains subject to receiving approval from the Bangladeshi government to progress the project.

GCM said it believes the government ‘is serious regarding developing its domestic coal resources’.

‘While this offers no certainty in relation to the project, this bodes well for the company,’ said GCM.

It said the funds will be used for corporate overheads, legal and advisory costs and general administrative expenses.

GCM Resources continues to generate nil revenue and incurs pre-development expenditure, it said.

The company expects to report a post tax loss for the six months to the end of December of £1.3 million, compared to £700,000 in the prior year.

It said administrative expenses have risen 30% to £461,000 from £355,000, while capitalised project expenditure has increased 50% to £259,000 from £173,000.

Shares in GCM Resources were down 24% to 2.72 pence in London on Friday afternoon.

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