(Alliance News) - Oracle Power PLC on Monday said it has entered into a joint development agreement with the private office of Sheikh Ahmed Dalmook Juma Al Maktoum of Dubai and China National Coal Development Co Ltd, having confirmed the talks last Thursday.
The AIM-listed power plant developer said the deal follows a proposed new initiative between the governments of Pakistan and China with respect to gasification of coal into fertiliser.
This new initiative runs in parallel to Oracle's remaining long-term plan to construct and operate a mine-mouth power plant on Thar block VI, located in the Sindh Province of Pakistan.
Oracle explained that the agreement foresees the creation of a special purpose vehicle to develop and undertake the block, with China National Coal Development Co holding a 73% interest, the private office of Sheikh Ahmed owing 15% stake, and Oracle holding the reminder.
The company said that the project will be funded on a 75% debt and 25% equity basis.
"I believe these two partners bring with them the requisite expertise, financial wherewithal and global presence to ensure a project of this scale can be brought to fruition," said Oracle Chief Executive Naheed Memon.
"The outlook for Oracle has never been brighter, and I look forward to updating the market on further developments as we move forward in 2020," added Memon.
The stock was trading 2.0% higher in London on Monday morning at 1.33 pence a share.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Oracle Power (ORCP)