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Oracle Power tidies up ownership of coal mining lease in Pakistan

"The move to 100% ownership of SCEL is a material development for Oracle"
coal truck
Thar is in Pakistan's Sindh province

Oracle Power PLC (LON:ORCP) saw its shares jump on news it is to take full ownership of the company that owns the mining lease for the Thar coal to power project in Pakistan.

Anthony Scutt, Oracle’s chairman, said: "The move to 100% ownership of SCEL is a material development for Oracle, clearing a significant hurdle as the Company moves to financial close.

READ: Oracle Power sees the finish line at Thar

“Sindh Koela Limited now stand to benefit alongside existing Oracle shareholders as the project advances and the current disparity between the market valuation and that of the project narrows.”

Oracle will pay £3.6mln to Sindh Koela Limited (SKL) for the outstanding shares in Sindh Carbon Energy (SCEL). 

Of that, £2.2mln will be met through a share placing at at 2.3p per share. 

On completion, Oracle will have 100% ownership of the Pakistani operating companies for both mining (through SCEL) and power (through Thar Electricity (Private) Ltd).

READ: Oracle Power raises over £770K through share placement and warrant exercise

This was a key demand of the company's potential strategic partners in the Memorandum of Understanding announced in November for the funding and development of the US$1.6bn Thar project. 

The father of Shahrukh Khan, Oracle’s chief executive, is a shareholder in SKL and neither pf them was involved in negotiating this transaction.

In late morning trading, Oracle Power's shares were up 18%, or 0.25p at 1.634p.

 -- Adds share price --  

 

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