Oracle Coalfields PLC China Pakistan Economic Corridor (6003T)

TIDMORCP

RNS Number : 6003T

Oracle Coalfields PLC

09 January 2017

China Pakistan Economic Corridor

Released : 9 January 2017

Oracle Coalfields PLC

9 January 2017

9 January 2017

Oracle Coalfields PLC

("Oracle" or "the Company")

Company added to Priority List in China-Pakistan Economic Corridor

Oracle Coalfields PLC (AIM:ORCP), the UK energy developer of a combined lignite mineral resource and mine mouth-power plant located in the Thar desert, in the south-east of Sindh Province, Pakistan, has been advised by the relevant Pakistani Government authorities that its standing in the China-Pakistan Economic Corridor ("CPEC") has been elevated to the Priority List. This inclusion on the Priority List, given the project's strategic and sizeable nature, should position the Company's project on a fast-track for approval of debt funding by the Chinese Government Agencies.

The sixth meeting of the Joint Cooperation Committee of the CPEC was held in Beijing on 29(th) December 2016 between the Government of China led by the vice-chairman of the National Development and Reform Commission and the Pakistan Government led by Federal Minister of Planning & Development. During this meeting it was confirmed that Oracle's Block VI Thar Coal Project had been elevated to the Priority List.

The CPEC has been set up to improve economic ties, in particular to support infrastructure and energy projects in Pakistan. Under the CPEC, the Chinese Government and Chinese banks aim to finance Chinese companies investing in approved projects under the CPEC as commercial ventures and help to operate the projects as profit making entities. The Company understands that the total financing made available to companies under the 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.

Shahrukh Khan, CEO of Oracle, said:

"Our elevation in the CPEC affirms the support that the Governments of China and Pakistan are giving to our integrated coal mine and power plant project. We are delighted by this development, which should fast-track the funding of our project.

"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. 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."

Ends

For further information:

 
     Oracle Coalfields PLC                        +44 (0) 203 
      Shahrukh Khan                                  102 4807 
     Brandon Hill Capital Limited                  +44 (0)203 
      Oliver Stansfield                              463 5000 
     Peterhouse Corporate Finance              [phone] 
      Charles Goodfellow                                 9791 
     Grant Thornton UK LLP 
      Salmaan Khawaja, Richard Tonthat,           +44 (0) 207 
      Daniel Bush                                    373 5100 
     Blytheweigh 
      Tim Blythe, Camilla Horsfall,               +44 (0) 207 
      Megan Ray,                                     138 3204 
     Fortbridge Consulting                       +44 (0) 7966 
      Matt Beale, Bill Kemmery                         389196 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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January 09, 2017 02:00 ET (07:00 GMT)