leadf
logo-loader
viewOracle Power PLC

Oracle Power shares leap as partners ratify memorandum for Thar development

The MoU was originally signed in November between Oracle and SCIG and PowerChina, its two co-developers

coal
Thar is a coal-fired power station

Oracle Power PLC (LON:ORCP) shares jumped nearly 17% higher on Friday after its Chinese partners ratified a memorandum of understanding to proceed with the development of the Thar power station project in Pakistan.

The MoU was originally signed in November between Oracle and SCIG and PowerChina, its two co-developers.

The next step will be the completion of due diligence early in the next quarter.

Details of the development agreement are as follows

  • Thar is forecast to cost US$1.6bn
  • Proposed debt : equity ratio 75:25
  • Oracle to hold a minimum 12.1% equity
  • Oracle's historic development costs to be recognised as part of its equity holding and contribution in the project
  • The Chinese partners to be exclusively responsible for arranging project financing.

Thar is being developed in two stages. This approval by the board of SCIG, the Chinese companies, is a key step forward as part of the first stage. 

On completion of the first stage, the next step will be to seek approval from the Chinese Government, after which a final development decision will be made to take the Project through to financial close.

The project has priority status in the China Pakistan Economic Corridor.

Shahrukh Khan, Oracle’s chief executive, said: "I am delighted to announce the approval of the SCIG Board to proceed with the project.

“Since signing the MOU in November 2017, all parties have worked hard to advance the project.”

In late afternoon trading, Oracle Power shares were 17% higher at 1.55p.

 -- Adds share price --

Quick facts: Oracle Power PLC

Price: 0.65 GBX

AIM:ORCP
Market: AIM
Market Cap: £13.56 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Oracle Power PLC named herein, including the promotion by the Company of Oracle Power PLC in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Oracle Power hails funding MoU with two chinese state-owned enterprises

Shahrukh Khan, chief executive of Oracle Power PLC (LON:ORCP), discusses with Proactive their memorandum of understanding (MoU) with two China state-owned companies to advance their lignite coal mine and power station project in Pakistan. The UK energy developer said the MoU with Sichuan...

on 23/11/17

2 min read