Oracle Power Plc (LON:ORCP) has raised £450,000 of new capital to support efforts to advance coal to power partnerships in Pakistan with state-backed Chinese firms.
It is placing 45mln new shares, priced at 1p each.
Earlier this year, in March, the company entered into a memorandum of understanding with a Chinese consortium and due diligence work continues.
READ: Oracle concentrates on formalising deals with Chinese partners
The MOU envisages a gross project cost of US$1.6bn, with 75% to be covered by debt, and Oracle would retain at least 12.1% of the projects.
Originally, the company had anticipated that the first phase of the partnership would be completed in the first half, and, now it is expected in the third quarter.
Today’s placing allows Oracle to meet its short-term working capital requirements through to December. It continues to assess a variety of longer-term funding options.
"We are pleased to confirm this equity placing, which will strengthen the company's balance sheet and provide working capital taking the company forward with its Chinese partners,” said Shahrukh Khan, Oracle chief executive.
He added: “The initial phase of development carries a capital cost of US$1.6bn and is for a gross 4mln tonnes per annum mine, feeding a 700MW power plant.
“Given the size of this undertaking, due diligence has naturally taken some time and we are grateful for the patience of our shareholders.
“We remain heartened by the ongoing dialogue and relationship with the Chinese consortium and we are confident that we will be able to draw the project to a successful conclusion."
