Oracle Power Share News (ORCP)

LONDON (Alliance News) - Oracle Power PLC, which is developing a combined lignite coal mine and mine-mouth power plant in south-eastern Pakistan, said Tuesday it has raised GBP550,000 by a placing of 39.3 million shares.

The proceeds of the placing will help Oracle's general working capital as it moves towards a memorandum of closing with Sichuan Provincial Investment Group and PowerChina International Group Ltd, announced back in November. Earlier this month, Oracle said Sichuan Provincial Investment had formally approved its role in the Block VI joint venture with Oracle. The project is located in the Thar desert in Pakistan's Sindh province.

The new ordinary shares were placed at 1.40 pence. Shares in Oracle Power were down 8.1% to 1.45p in London midday Tuesday.

Brandon Hill Capital Ltd and its parent company, Optima Worldwide Group PLC, each have agreed to subscribe for 7.1 million shares.

Neal Griffith, director and shareholer of OWG and a director of Brandon Hill Capital, and Oliver Stansfield, a director of Brandon Hill Capital, have each agreed to subscribe for 1.8 million shares.

Brandon Hill Capital, and its parent company OWG, and their directors, will now hold 220.3 million shares, which represents a 20% stake in Oracle Power.

Oracle Chief Executive Officer Shahrukh Khan said: "We are pleased to confirm this equity placing, which will strengthen the company's balance sheet to continue the work with our Chinese partners to reach financial close of Thar Block VI."