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RNS Number : 6003T
Oracle Coalfields PLC
09 January 2017
 

China Pakistan Economic Corridor 

Released : 9 January 2017

 

Oracle Coalfields PLC

9 January 2017

 

 

9 January 2017

Oracle Coalfields PLC

("Oracle" or "the Company")

Company added to Priority List in China-Pakistan Economic Corridor

 

Oracle Coalfields PLC (AIM:ORCP), the UK energy developer of a combined lignite mineral resource and mine mouth-power plant located in the Thar desert, in the south-east of Sindh Province, Pakistan, has been advised by the relevant Pakistani Government authorities that its standing in the China-Pakistan Economic Corridor ("CPEC") has been elevated to the Priority List. This inclusion on the Priority List, given the project's strategic and sizeable nature, should position the Company's project on a fast-track for approval of debt funding by the Chinese Government Agencies.

 

The sixth meeting of the Joint Cooperation Committee of the CPEC was held in Beijing on 29th December 2016 between the Government of China led by the vice-chairman of the National Development and Reform Commission and the Pakistan Government led by Federal Minister of Planning & Development.  During this meeting it was confirmed that Oracle's Block VI Thar Coal Project had been elevated to the Priority List.

 

The CPEC has been set up to improve economic ties, in particular to support infrastructure and energy projects in Pakistan.  Under the CPEC, the Chinese Government and Chinese banks aim to finance Chinese companies investing in approved projects under the CPEC as commercial ventures and help to operate the projects as profit making entities. The Company understands that the total financing made available to companies under the CPEC has increased to around US$50 billion. The debt component of Oracle's Thar project is anticipated to be in the region of US$1 billion.

 

Shahrukh Khan, CEO of Oracle, said:

"Our elevation in the CPEC affirms the support that the Governments of China and Pakistan are giving to our integrated coal mine and power plant project. We are delighted by this development, which should fast-track the funding of our project.

 

"As previously announced on 3 June 2016, the Company has signed a conditional Shareholder Framework Agreement, whereby a consortium of new and existing Chinese partners will take 70% equity in its subsidiaries in Pakistan.  Oracle confirms this Agreement is still in place and the Company looks forward to updating the market in the near term upon execution of a binding Shareholders Agreement, including specific terms of the transaction and its financing."

 

Ends

For further information:

 

Oracle Coalfields PLC

Shahrukh Khan

 

+44 (0) 203 102 4807

Brandon Hill Capital Limited

Oliver Stansfield

 

+44 (0)203 463 5000

Peterhouse Corporate Finance

Charles Goodfellow

 

+44 (0)20 7220 9791

Grant Thornton UK LLP

Salmaan Khawaja, Richard Tonthat, Daniel Bush 

 

+44 (0) 207 373 5100

Blytheweigh                                                   

Tim Blythe, Camilla Horsfall, Megan Ray,     

 

+44 (0) 207 138 3204

Fortbridge Consulting                                                  

Matt Beale, Bill Kemmery

 

+44 (0) 7966 389196

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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