MEMORANDUM OF AGREEMENT ON PROJECT FUNDING

RNS Number : 9008R

Oracle Power PLC

27 September 2017

 

27 September 2017

ORACLE POWER PLC

("Oracle" or the "Company" or the "Group")

MEMORANDUM OF AGREEMENT ON PROJECT FUNDING

Oracle Power PLC (AIM:ORCP), the UK energy  developer of a combined lignite coal mine and mine mouth power plant located in the Thar desert in the south-eastern Sindh Province of Pakistan, today announces that it has agreed in principle a Memorandum of Understanding ("MOU") with two Chinese State-owned Enterprises for the full development and funding of its flagship Thar project.  The MOU sets out, inter alia, that the Chinese parties will take a significant majority equity holding, will arrange debt finance and will provide Engineering, Procurement and Construction (EPC) contractors for the coal mine and power plant.

MOU terms are being finalised and it is anticipated that the MOU will be formally signed during October 2017. The MOU, once executed, will supersede previous MOUs and shareholder framework agreements relating to the development of the mine and power projects that have been announced by the Company.

A further announcement, with details of the terms of the MOU, will be released once the MOU is finalised.

Shahrukh Khan, CEO of Oracle, said:

"This is a positive step-forward in taking our project through to financial close.  I thank our Chinese partners for the confidence they have shown in the project and in Pakistan and I look forward to working with them."  

For further information please contact:

Oracle Power PLC Shahrukh Khan	[phone]
Brandon Hill Capital Limited Oliver Stansfield	[phone]
Peterhouse Corporate Finance Charles Goodfellow	[phone]
Grant Thornton UK LLP Salmaan Khawaja, Richard Tonthat, Daniel Bush	[phone]
Blytheweigh                                                   Tim Blythe, Camilla Horsfall, Megan Ray	[phone]
Fortbridge Consulting                                                   Matt Beale, Bill Kemmery	[phone]

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

END

 

 

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