Oracle Signs Joint Development Agreement

RNS Number : 1143G

Oracle Coalfields PLC

26 June 2012

 



26 June 2012

Oracle Coalfields PLC

("Oracle" or "the Company")

Oracle signs Joint Development Agreement with Karachi Electric Supply Company

for long-term Coal and Water supply

Oracle Coalfields PLC (AIM:ORCP), the UK coal developer of a lignite mineral property located in the south-eastern desert of the Sindh Province, Pakistan, today announces that it has signed a Joint Development Agreement ("JDA") with Karachi Electric Supply Company Limited ("KESC"), through its 80 per cent owned subsidiary Sindh Carbon Energy Limited ("SCEL"), which will see SCEL provide KESC with a long-term supply of coal and water. This agreement supersedes the MoU signed between the respective parties on 12 December 2009.

The coal and water will be used initially by a 300 MW coal-fired power plant (with potential to be increased to 1,100 MW) which will be constructed by KESC adjacent to Oracle's planned coal mine in Block VI of the Thar Coalfield in Pakistan, in an area that will be sub-let by SCEL to KESC as part of the JDA agreement.

Shahrukh Khan, CEO of Oracle, said:

"This is a hugely positive step in the development of Oracle's project in the Sindh Province in Pakistan. It follows shortly after the Mining Lease that the Company was granted on 12 April 2012, and represents significant progress towards our goal of becoming a major coal producer in Pakistan.

"The agreement with KESC brings security in the form of a major purchaser for our product."

SCEL reserves the right, under the terms of the JDA, to enter into discussions with any other third party for the supply of coal, provided that any agreements entered do not affect SCEL obligations to KESC under the JDA.

Ends

For further information:

Oracle Coalfields PLC   

Shahrukh Khan, CEO                                                                                                     [phone]  

Blythe Weigh Communications

Tim Blythe, Robert Kellner, Samantha Ryan                                                        [phone]

Novus Capital Markets (Joint Broker)

Denis Christie, Charles Goodfellow                                                                        [phone]

Libertas Capital Corporate Finance Limited

Sandy Jamieson, Neil Pidgeon                                                                                 [phone]

 

END

 

 

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