---adds broker comment--- Oracle Coalfields (LON:ORCP) is negotiating the details of engineering contracts for its 600 MW mine-mouth power plant project in Pakistan, with talks also now underway on debt financing. Oracle aims to sign an EPC term sheet with contractor SEPCO and marking agreement on a number of key issues ahead of the full EPC contracts. The Environmental and Social Impact Assessment is also being finalised and work on resettlement of people affected by the project has started. Shahrukh Khan, chief executive, said: "In preparation for financial closure, we are currently finalising details of the Engineering Procurement and Construction contracts with our Chinese partners for both the mine and the power plant, and also debt financing supported by Sinosure the state-owned China Export and Credit Insurance Corporation.” "The power shortage in Pakistan remains acute and the Government remains steadfast in its objective of dealing with the country's energy crisis.“ Losses in the six months to June were £529,000 (2014: loss of £378,000), with cash at the period end of £1.47mln. Broker Shore Capital said the letter of intent (LOI) with Sinosure, on the debt underwriting, now looks more likely sometime in 2016, rather than by the end 2015. Shares eased around 10% to 1.275p.
Oracle Coalfields finalising EPC and debt details
Oracle aims to sign an EPC term sheet with its contractor, SEPCO, marking agreement on a number of key issues ahead of the full EPC contracts.