Last checked at 24 Jul 2012 07:00
24 July 2012
Oracle Coalfields PLC
("Oracle" or "the Company")
£2m Equity Line Facility
Issue of Equity
Total Voting Rights
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 agreed a £2 million Equity Line Facility ("ELF") with Dutchess Opportunity Cayman Fund Ltd ("Dutchess"). The ELF has been arranged by First Columbus LLC who is Dutchess's joint venture partner in the UK. The facility is for a period of 36 months.
The ELF offers the Company ongoing access to capital as it enables the Company to obtain funding from Dutchess at any time during the next three years by way of subscription for new ordinary shares in the Company. Subscriptions will be priced at a 5 per cent discount to ten consecutive trading days immediately after the date of notification of drawdown.
The ELF may be drawn down in tranches linked to the Company's average daily trading volume in the three days prior to the notice of draw down or in other specified amounts. All draw downs under the ELF will take place at timings and intervals solely determined by the Company, subject to the agreed mechanisms specified under the ELF.
Currently Oracle has not drawn on the ELF facility.
The Company will pay an initial arrangement fee (the "Commitment Fee") of £20,000 to be satisfied through the issue of 666,666 new ordinary shares of 0.1p each in the Company ("New Ordinary Shares") at a price of approximately 3 pence per share. The Commitment Fee also requires the Company to issue to Dutchess and First Columbus LLC 666,666 warrants in aggregate with an exercise price of 4.8 pence, being a 77.8 per cent. premium to the Company's mid market closing price on 23 July 2012.
Application will be made for the admission of the New Ordinary Shares to trading on AIM ("Admission"). The New Ordinary Shares will rank pari passu with existing ordinary shares and it is expected that Admission will occur at 8.00 a.m. on 30 July 2012.
Following Admission of the New Ordinary Shares, the total number of voting rights in the Company's ordinary shares will be 214,877,666. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules
Shahrukh Khan, CEO of Oracle, said:
"Putting a facility of this kind in place will help to ensure that the Company is appropriately funded for the medium term. Financing will be required for working capital as Oracle progresses to full-scale mine development.
"The last year has seen Oracle make significant strides towards the ultimate objective of developing a world-class coal mine in Pakistan. The acquisition of a mining license, the signing of a Joint Development Agreement with the Karachi Electric Supply Company, and the strengthening of the Company's board and management team have all served to prove the ambition and direction of the Company."
Douglas Leighton, Managing Director of Dutchess commented:
"We are happy to provide this facility to Oracle to help management achieve its goals over the next several years."
Ends
For further information:
Oracle Coalfields PLC
Shahrukh Khan, CEO +44 (0) 20 7317 4056
Blythe Weigh Communications
Tim Blythe, Robert Kellner, Samantha Ryan +44 (0) 20 7138 3204
Seymour Pierce (Nominated Adviser & Joint Broker)
Stewart Dickson / Julian Erleigh (Corporate Finance) +44 (0) 20 7107 8000
Richard Redmayne / Jacqui Briscoe (Corporate Broking)
Novus Capital Markets (Joint Broker)
Denis Christie, Charles Goodfellow +44 (0) 20 7107 1881