Oracle Coalfields PLC’s (LON:ORCP) Thar coal and power project emerged from last year as one of the more "exciting ones" amid a gloomy sector, said the group, which is progressing the site towards financial close.
Chairman Adrian Loader told investors progress in 2015 had been solid.
"Notably, we resolved the lease issues with the authorities; we placed £3.37 million of equity; our inclusion in the China - Pakistan Economic Corridor was confirmed; we formally registered our power plant project and received a No Objection letter for power evacuation; our coal price petition was admitted and agreement was reached with Shangdong Electric Power Construction Corporation (SEPCO), our Chinese partners, that they take a minimum 10% equity stake in the power plant."
The project is expected to cost $1.6bn to become a reality and the firm is now finalising agreements and contracts, including an EPC term sheet and contracts with its Chinese partner SEPCO for the coal mine and power plant and environmental studies.
"Financing arrangements with Sinosure and other banks will be reached against this backdrop, and we have started discussions with potential investors to raise the necessary equity," it said.
In keeping with its position, the loss before tax was around £972,000 for the year, against a loss of around £709,000 in 2014. Its cash position at year end was £1.86mln compared to £383,063 in 2014.