Business
Consortium Agreement
Consortium Agreement.
About this update from Oracle Power Plc
[{"type":"text","content":"\n \n \n RNS Number : 4839D\n Oracle Power PLC\n 19 February 2020\n \n \n \n \n Oracle Power Plc / EPIC: ORCP / Market: AIM / Sector: Mining\n \n \n \n \n \n 19 February 2020\n \n \n \n \n \n Oracle Power PLC\n \n \n (\"Oracle\", the \"Company\" or the \"Group\")\n \n \n \n \n \n Consortium Agreement signed with China National Coal Development Company Ltd. and His Highness Sheikh Ahmed Bin Dalmook Juma Al Maktoum\n \n \n \n \n \n Oracle Power PLC (AIM:ORCP) is pleased to announce that it has signed a Consortium Agreement with its partners, \n China National Coal Development Company Ltd. (\"CNCDC\") and Sheikh Ahmed Dalmook Al Maktoum Private Office One Person Company LLC (\"HH Private Office\"), the private office of \n His Highness \n Sheikh Ahmed Bin Dalmook Juma Al Maktoum (\"His Highness\"), and\n , together with Oracle, referred to as \"the Parties\".\n \n \n \n \n \n This Consortium Agreement has been entered into following significant due diligence, administrative and operational work undertaken by Oracle on behalf of the Parties since entering into the Joint Development Agreement (the \"JDA\"), as announced on 16 December 2019. This Consortium Agreement is a material development, superceding the JDA, as it establishes the proposed project shareholding structure as required under the Government of Pakistan's 2010 Independent Power Production (IPP) policy guidelines. The Company has now taken all necessary steps to formally obtain a Letter of Intent (\"LOI\") from the Pakistani Government as a result of the proposed shareholding structure. The final equity interests of the Parties at financial close are subject to definitive agreements being entered into in due course.\n \n \n \n \n \n Under the Consortium Agreement, the Parties intend to jointly develop a combined lignite coal mine in Block VI (the \"Project\") of the Thar desert in the south-east of Sindh Province, Pakistan, for a 1,320MW (2x 660MW) mine mouth power plant and coal to gas and liquid. The Board believes that the proposed development of Block VI should produce sustainable and cheap energy for Pakistan, as well as enable the use of coal for the production of gas (primarily for use in the production of fertiliser) to meet the growing demand for gas as Pakistan's gas reserves decline. In addition, development of the Pr...