TIDMORCP
RNS Number : 3919U
Oracle Power PLC
29 July 2020
29 July 2020
Oracle Power PLC
("Oracle", the "Company" or the "Group")
Non- Binding MoU signed with HH Private Office
Oracle Power PLC (AIM:ORCP) is pleased to announce that it has
signed a non-binding Memorandum of Understanding ('MoU') with The
Office of His Highness Sheikh Ahmed Dalmook Al Maktoum ('HH Private
Office'), which will see Oracle and HH Private Office (together the
'Parties') potentially partner and collaborate to explore potential
mining opportunities in Africa.
HH Private Office currently develops and owns various projects
across the natural resources sector in Africa. Under the MoU the
Parties will initially focus on the Republic of Guinea, where HH
Private Office holds an exploration licence and has established a
positive working relationship with the Government. The Parties will
focus on the further advancement of this exploration licence, which
is in the south east of the country for an iron ore project (the
"Guinea Project").
In due course and subject to agreement, it is envisaged that the
Parties will collaborate on additional opportunities as they arise.
It is expected that HH Private Office will identify available
projects and potential financiers through its network. Oracle would
expect the opportunity to earn an interest in these projects as
they are advanced.
HH Private Office is the largest shareholder in Oracle with
15.1% and is highly supportive of its efforts in progressing Thar
Block VI Project in Pakistan. The collaborative relationship and
progress being made in respect of the Company's flagship project in
Pakistan has made the signing of the MoU a logical next step. The
Parties remain resolute in achieving the previously announced
project milestones in Block VI in as short a timeframe as
practicable. This is now to be complemented by the potential for a
further partnership to build shareholder value.
Naheed Memon, CEO of Oracle, commented : "It brings me great
pleasure to announce that we have reached an agreement on a MoU
with the Office of His Highness Sheikh Ahmed Dalmook Al Maktoum,
our supportive strategic shareholder. 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.
"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. While we will continue to evaluate additional
interesting projects of our own, it is logical to formally
cooperate with HH Private Office, given its significant interests
on the African Continent and far-reaching financial network.
"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. I look forward to providing further
updates on this, as well as developments in Pakistan in the near
term."
His Highness Sheikh Ahmed Dalmook Al Maktoum, commented : " As
an existing shareholder in Oracle , we are pleased with the
progress being made in Pakistan.
"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."
Objectives under the MoU include:
-- Establishing a cooperation relationship where Oracle may
partner and collaborate with HH Private Office to explore potential
mining opportunities in Africa with a view to jointly develop
mining projects in Africa ('Potential Projects')
-- The Parties shall cooperate and coordinate in project
development activities, including research and information sharing,
carrying out necessary studies and undertaking site visits for the
development and implementation of Potential Projects, and in
particular the Guinea Project
-- The Parties shall:
o assist each other by providing support and assistance to
assess the necessary information to enable each of HH Private
Office and Oracle to decide whether to make investments for the
implementation of the Potential Projects;
o make available such resources and personnel as it reasonably
has at its disposal for the evaluation, structuring, documentation,
execution, development and implementation of the Potential
Projects;
o keep each other informed of all activities pertaining to the
Guinea Project; and
o pursue any other initiative considered of mutual
importance.
-- The Parties will cooperate and jointly work together to
evaluate the information about the Potential Projects and in
particular carry out technical due diligence on the Guinea Project
within six months of signing the MoU. Subject to due diligence, the
Parties may agree to enter into a farm-in agreement for the
exploration, appraisal and/or development of the Guinea Project
o The MoU does not commit Oracle to any capital commitments
-- After the completion of the necessary studies and due
diligence, the Parties will in good faith also discuss their
investment plan for the Potential Projects, including the Guinea
Project, based upon which the Parties may enter into separate
detailed agreements
Certain other key terms of the MoU are set out below:
-- The MoU will terminate upon the occurrence of the following;
o the date on which the Parties sign another agreement that
contains provisions replacing the MoU and covers obligations
related to a Potential Project and/or the Guinea Project; or
o after one (1) year if there is lack of sufficient progress the
date of signature of the MoU; or
o in the event that the Parties fail to reach a reasonable
conclusion on further negotiations on the project structure and
commercial terms in respect of any of the Potential Projects or the
Guinea Project.
-- The MoU is non binding and is intended to set out a mutual
understanding of the Parties proposed collaboration framework
*ENDS*
For further information:
Oracle Power PLC +44 (0) 203 580
Naheed Memon 4314
Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409
Rory Murphy, James Harris, Jack Botros 3494
Brandon Hill Capital Limited (Joint Broker) +44 (0) 203 463
Oliver Stansfield 5000
Shard Capital (Joint Broker)
Damon Heath
Isabella Pierre
St Brides Partners Limited (Financial +44 (0) 20 7186
PR) 9952
Susie Geliher +44 (0) 20 7236
Catherine Leftley 1177
About HH Private Office
The Office of His Highness Sheikh Ahmed Dalmook Al Maktoum is
based out of the United Arab Emirates (UAE) and currently develops,
owns and operates various projects in the energy and infrastructure
sectors. The Private Office has multiple businesses across Africa,
the Middle East and South Asia regions, including Pakistan. The
Private Office brings not only direct and indirect access to
capital, but a wealth of contacts and relationships which the
Oracle Board believes will be highly beneficial. For more
information on the Private Office, please visit the following
website: https://admoffice.ae/
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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