Oracle Coalfields plc's (LON:ORCP) huge Thar coal and power project has been further boosted - as the site was raised to the priority list by the China-Pakistan Economic Corridor (CPEC).
The latter has been established to support infrastructure and energy projects in Pakistan, and importantly, should result in the fast-tracking of debt-funding for the project.
A delighted chief executive Shahrukh Khan told investors it reinforced the support given by the governments in China and Pakistan.
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"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," he said.
"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."
Under CPEC, the Chinese government and banks aim to finance Chinese companies investing in approved projects.
Oracle said total financing made available to companies under 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.