Last checked at 9 May 2023 07:00
9 May 2023
Oracle Power PLC
("Oracle" or the "Company")
Farm-out of Northern Zone Gold Project, Kalgoorlie, Western Australia
Oracle Power PLC (AIM:ORCP), is pleased to announce that it has signed a binding Heads of Agreement ("HOA") with ASX-listed Riversgold Limited ("Riversgold"), which will farm-in to licence P25/2651, known as the Northern Zone Gold Project, located 25 km east of Kalgoorlie in Western Australia (the "Northern Zone Project" or the "Project").
The agreement gives Oracle exposure to the upside of potential exploration success and thereafter development of the Northern Zone Project.
Key Terms:
· Riversgold to farm-in to the Northern Zone Project with the right to earn up to 80% beneficial interest via:
o Immediate cash consideration of A$50,000 payable to Oracle
o Exploration Expenditure (examples of which are set out in the HOA) of not less than A$600,000 within the next two years.
· Riversgold has the option to withdraw if it has incurred A$200,000 of Exploration Expenditure in the first year.
· Thereafter Oracle to retain 20% interest, which would be funded at its sole discretion under a joint venture agreement that would be put in place.
Naheed Memon, CEO of Oracle, commented:
"I am extremely pleased to have signed this deal with Riversgold, which is well funded and has a strong presence in Western Australia, with complementary gold projects nearby at Kurnalpi. The gold system encountered at the Northern Zone Project has potential scale, with a multi-million-ounce gold exploration target, identified by Oracle, and substantiated by widths of gold mineralisation over 100m in drilling. With the gold price moving from approximately A$2,500 per ounce, to over A$3,000 per ounce, the Northern Zone Project, as an exploration play, is ever more compelling. Riversgold plans to be on the ground quickly and is, overall, very well placed to generate value for Oracle's shareholders."
About Northern Zone Project:
The Northern Zone Project is comprised of one granted prospecting licence (P25/2651) which covers an area of 82 hectares (Figure 1). The Project is located in an area highly prospective for gold and is approximately 25km east of Kalgoorlie, the home of the 'Super Pit' mine, the second largest gold mine in Australia.
*ENDS*
For further information on Oracle Power Plc, visit the Company's website http://www.oraclepower.co.uk or contact:
Oracle Power PLC
Naheed Memon - CEO +44 (0) 203 580 4314
Strand Hanson Limited (Nominated Adviser)
Rory Murphy, James Harris, Rob Patrick +44 (0) 20 7409 3494
Buchanan (Financial PR) +44 (0) 203 7466 5000
Oonagh Reidy/ Abigail Gilchrist
This announcement contains inside information for the purposes of Article 7 of EU Regulation No. 596/2014, which forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended.
Figure 1: Northern Zone Project location map showing proximity to the Kalgoorlie "Super Pit"