CEO Q3 Update and Shareholder Q&A Session

RNS Number : 5720B

Oracle Power PLC

09 October 2020

 

Oracle Power PLC

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

CEO Q3 Update and Shareholder Q&A Session

Oracle Power PLC (AIM:ORCP) is pleased to provide the following update statement from its CEO, Naheed Memon, with respect to developments during Q3 2020:

"The past three months have been defined by the progression of our strategy in respect of the development of Oracle's Thar Block VI Project towards Financial Close, and have also laid the foundations for our Company becoming an international natural resources and power developer.

"Working backwards from our recent events, shareholders will no doubt be aware of the recent presentation that we, along with our Consortium partners, China National Coal Development Company Ltd. and The Private Office of His Highness Sheikh Ahmed Bin Dalmook Juma Al Maktoum (together, the 'Consortium'), made to the Private Power and Infrastructure Board ('PPIB') on 11 September in Islamabad, Pakistan.  This presentation, which set out in detail the implementation plan for Thar - as an industrial park, centred around the development of a large mine, along with a mine mouth power plant, a coal gasification (urea/fertiliser) and coal-to-liquids plant, was a critical meeting for Oracle and represented one of the final steps ahead of the view to finalising the award of the Letter of Intent ('LOI') from the PPIB for power.

"The Board of Oracle understands that discussions within the PPIB are progressing well and that meetings between high-ranking government and PPIB officials have been diarised following a recent reshuffling of some of the top executives, and non-executives, in the power sector which delayed the process last month.  We have been advised that these meetings will set the agenda, including tabling the LOI, for the PPIB Board meeting which is expected to follow shortly thereafter. 

"This intended schedule of events, which will be concluded with a Joint Cooperation Committee (JCC) meeting, has been outlined to the Board but as yet the precise timings cannot be confirmed. Whilst I cannot be definite in respect to timings, I would like to emphasise that there is an obvious spirit of cooperation and this has been clear whilst we have been advancing these discussions over recent weeks and that the size, scale and national strategic importance of this project is well-understood by all parties. It is with considerable optimism that I look to the coming weeks and hopefully translating the hard work conducted by the Oracle team and our Consortium Partners into quick progress of the project.

"As our shareholders will be aware, as our Thar Block VI Project advances, our minds have increasingly turned to establishing a framework through which to deliver our over-arching strategy: to become an international natural resources and power developer.

"Oracle has delivered two major accomplishments during the period which I believe has provided the groundwork for us to achieve this ambition. Firstly, we signed a financing facility for up to £46,500,000 - the first aspect of which, delivered through a £1,500,000 (gross) share subscription deed, ensured the Company is funded for working capital costs for 2021. The second component - being up to £45,000,000 by way of a placing subscription facility, is available to Oracle over 60 months, subject to various conditions, to support future project expenditures and is anticipated to provide flexibility as current commercial activities at Thar Block VI continue and also puts the Company in a strong negotiating position with potential additional opportunities to develop power and natural resource projects. Please see the Company's announcement of 9 July 2020 for further information on the financing facility.

"The possibility of participating in, or acquiring, additional opportunities in the natural resources and power industries was elevated in July with the signing of a non-binding Memorandum of Understanding ('MOU') with The Office of His Highness Sheikh Ahmed Dalmook Al Maktoum ('HH Private Office'), which will see the two parties potentially partner and collaborate to explore potential mining opportunities in Africa.

"Under the MoU the two parties will initially focus on the Republic of Guinea, where HH Private Office holds an iron ore exploration licence in the south-east of the country and has established a positive working relationship with the Government, however it is envisaged that this working relationship will extend to additional opportunities as they arise.

"Working together, and deepening the relationship, with HH Private Office, Oracle's largest shareholder (holding 14.38% of the issued share capital of the Company) is an important and strategic decision for us and we are eager to begin work in Guinea in the near future.

"The Board continues to assess other opportunities in the natural resources and power sectors which we believe have the potential to generate significant value for shareholders in the near term.  It is our eventual goal to provide investors with a diversified portfolio of interests through which to build value across multiple commodities, de-risking the inevitable volatility in individual minerals and metals, to deliver long-term and sustainable returns to our investors.  We are assessing two potential investments which we believe will fit these investment criteria and we look forward to reporting more if these discussions come to fruition.

"It is with this work in mind, and combined with the significant developments we anticipate at our flagship Thar Block VI Project during the current period, that I look to the remaining months of 2020 with optimism and I look forward to providing further updates to shareholders in due course."

The Board of Oracle would like to advise shareholders that Naheed Memon, CEO of Oracle, will be answering shareholder questions put to her during a recorded interview, which will be made available on the Company's website by close of business on Monday 19 October.

Shareholders are invited to submit questions to Ms. Memon by 12pm on Wednesday 14 October 2020 via email at [e-mail].  There is no guarantee that all questions will be discussed during the interview given time limitations and/or specific sensitivities with respect to operations.

*ENDS*

For further information:

Oracle Power PLC Naheed Memon	[phone]
Strand Hanson Limited (Nominated Adviser) Rory Murphy, James Harris, Jack Botros	[phone]
Brandon Hill Capital Limited (Joint Broker) Oliver Stansfield	[phone]
Shard Capital (Joint Broker) Damon Heath Isabella Pierre St Brides Partners Limited (Financial PR) Susie Geliher Catherine Leftley	[phone] [phone]

 

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