Oracle Coalfields PLC China Pakistan Economic Corridor (6003T)
09 January 2017 - 6:00PM
UK Regulatory
TIDMORCP
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 29(th) 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 +44 (0) 203
Shahrukh Khan 102 4807
Brandon Hill Capital Limited +44 (0)203
Oliver Stansfield 463 5000
Peterhouse Corporate Finance +44 (0)20 7220
Charles Goodfellow 9791
Grant Thornton UK LLP
Salmaan Khawaja, Richard Tonthat, +44 (0) 207
Daniel Bush 373 5100
Blytheweigh
Tim Blythe, Camilla Horsfall, +44 (0) 207
Megan Ray, 138 3204
Fortbridge Consulting +44 (0) 7966
Matt Beale, Bill Kemmery 389196
This information is provided by RNS
The company news service from the London Stock Exchange
END
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