Oracle Power PLC (LON:ORCP) has inked an agreement with the private office of Sheikh Ahmed Dalmook Al Maktoum which will see them potentially partner and collaborate to explore potential mining opportunities in Africa.
Sheikh Ahmed Dalmook Al Maktoum - a prominent Emirati - via the HH Private Office vehicle, currently develops and owns various projects across the natural resources sector in Africa.
Dubai-based HH Private Office is also Oracle’s largest shareholder, with a 15.1% stake, and is notably supportive of the group’s plans at the Thar Block VI project in Pakistan.
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“The agreement further solidifies Oracle's relationship with HH Private Office and reaffirms the belief it has in Oracle's abilities to deliver on the development of power and natural resources projects,” Naheed Memon, Oracle chief executive said in a statement.
Through the new non-binding memorandum of understanding (MOU) it is envisaged that the partners would initially focus on the Republic of Guinea where HH Private Office owns an exploration licence.
Oracle and HH Private Office would aim to advance an iron ore project within this licence.
Beyond that, they may potentially collaborate on additional opportunities as they arise.
The MOU indicates that HH Private Office would identify available projects and potential financiers through its network, whilst Oracle would earn interests in these assets as projects are advanced.
Memon pointed out: "Our priority remains the Thar Block VI Project in Pakistan, which continues to move forward as previously outlined. However, the company's broader strategy is to become an international power and natural resource project developer focussed on incubating natural resource assets to turn them into commercially viable production ventures.”
He added: "The Guinea project, the first under the MoU, is, in the company's view, potentially an asset of global scale and significance, which we believe offers significant potential to add value for Oracle shareholders.”
Sheikh Ahmed Dalmook Al Maktoum, meanwhile, in the statement said: “We see many opportunities to develop power and natural resources projects around the world and we are firm believers that mining development is important for many African nations.
“Africa has been a focus of ours for some time and where we have strong working relationships. We look forward to partnering and collaborating further with the board and management of Oracle under this MOU."