AIM-listedannounced on Monday it signed a Joint Development Agreement (JDA) with the Private Office of Sheikh Ahmed Dalmook Al Maktoum and the China National Coal Development Company (CNCDCL) for a project in the south-east of the Sindh Province of Pakistan.
The JDA will see the project funded on a 75% debt and 25% equity basis and a special purpose vehicle (SPV) to be made, 73% owned by CNCDCL, 15% owned by the Sheikh’s private office, and the remaining 12% owned by Oracle Power.
The project under the SPV is for the development of a lignite coal mine and mine mouth power plant within the flagship Thar Block VI in Pakistan, as well as a new initiative between the governments of Pakistan and China for the gasification of coal into fertiliser under the China-Pakistan Economic Corridor (CPEC).
Shares in Oracle Power were trading 2.68% higher at 1.335p Monday morning
Naheed Memon, CEO of Oracle said: "I am delighted to now confirm and welcome our new partners, His Highness Sheikh Ahmed Dalmook Juma Al Maktoum and China Coal. 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.”
In November, Sheikh Ahmed Bin Dalmook Al Maktoum, a member of Dubai's ruling family, took an 11.5% stake in Oracle Power with warrants to take his stake to up to 22.3%.
Naheed Memon added: “This Project is of national significance not just for Pakistan but, we believe, also for China as part of its One Belt Initiative and inclusion in CPEC.”
Oracle Power told investors the JDA supersedes and replaces the previous Memorandum of Understanding with Beijing Jingneng (BJPC) and CNCDCL.
The Sheikh’s Private Office and Oracle will be responsible for permits, licenses, governmental and regulatory approvals, while CNCDCL will be responsible for arranging debt funding, technical support and commissioning of the project.
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