logo-loader
viewOracle Power PLC

Oracle Power pays around US$50,000 registration fee for processing Letter of Intent in relation to Thar project

The AIM-listed firm said the funds have been spent under the pre-development funding agreement reached with its consortium partners Beijing Jingneng Power and PowerChina International

The Thar desert
The group said each party has contributed funds in proportion to their intended shareholding, with Oracle paying US$6,000 and its partners approximately US$44,000

Oracle Power PLC (LON:ORCP) has submitted a collective payment of approximately US$50,000 to the Private Power Infrastructure Board (PPIB) of the Pakistani Government, as the registration fee for processing an application for a Letter of Intent (LOI) in relation to the group’s proposed mine and power plant at Block VI in Thar.

The AIM-listed firm - which is developing a combined lignite mineral resource and mine mouth power plant in the Thar desert in the south-east of Sindh Province, Pakistan - said the funds have been spent under the pre-development funding agreement reached with its consortium partners Beijing Jingneng Power and PowerChina International.

READ: Oracle Power encouraged by continued support for the Thar thermal power project

The group said each party has contributed funds in proportion to their intended shareholding, with Oracle paying US$6,000 and its partners approximately US$44,000.

The company said the LOI, when approved, is issued along with a Notice to Proceed so that the applications for a Generation Licence and Upfront Tariff can be made to the National Electric Power Regulatory Authority. 

Following this, PPIB issues a Letter of Support, which allows the Power Purchase Agreement (PPA) to be finalised with the Central Power Purchasing Authority as well as the Implementation Agreement (IA) with the Government of Pakistan, which, inter alia, guarantees payments under the PPA.

Naheed Memon, Oracle’s CEO, said: "This is the first time that our Chinese partners have injected capital towards project development on the ground. 

“This payment to the Pakistani regulators reaffirms their interest and the consortium's eagerness to progress the project.

"We will keep shareholders informed as further milestones are achieved."

In afternoon trading, shares in Oracle Power were 3.2% higher at 0.32p.

 -- Adds share price --

Quick facts: Oracle Power PLC

Price: 1.3 GBX

AIM:ORCP
Market: AIM
Market Cap: £20.27 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Oracle Power PLC named herein, including the promotion by the Company of Oracle Power PLC in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Investor Update: Oracle Power's Pakistan block recognised as potential...

Headlines from the Proactive UK newsroom. Oracle Power PLC’s (LON:ORCP) resource on Block VI at Thar in Pakistan has been officially recognised as a potential coal gasification into fertiliser project. Pakistan is estimated to face a sizeable fertiliser shortage by 2026. Arc Minerals Ltd...

3 weeks, 5 days ago

RNS

Second Price Monitoring Extn

2 days, 2 hours ago

Price Monitoring Extension

2 days, 2 hours ago

Share Price movement

3 days, 3 hours ago

Holding(s) in Company

6 days, 5 hours ago

Holding(s) in Company

1 week, 4 days ago

Second Price Monitoring Extn

1 week, 6 days ago

Price Monitoring Extension

1 week, 6 days ago

2 min read