£1,041,690 fundraising completed
GB00B23JN426/GBP/PLUS-exn
28 June 2010
Oracle Coalfields Plc
("Oracle" or the "Company")
£1,041,690 fundraising completed
Funds allow additional working capital for completion of the Bankable Feasibility Study
The Board of Oracle Coalfields PLC (PLUS: ORCP), the UK developer of a 1.4 billion tonne coal deposit in
southern Pakistan, is pleased to announce that the Company has successfully raised £1,041,690 via a placing
of 34,722,999 new ordinary shares of 1p each in the Company ("Placing Shares") at a placing price of 3p per
ordinary share (the "Placing").
The net proceeds of approximately £1.0 million from the Placing will provide additional working capital for
the business to complete the Bankable Feasibility Study (BFS) on its flagship project in Block VI of the
Thar coalfield in the eastern Sindh province, Pakistan. Block VI is host to a JORC resource of 1.4 billion
tonnes of lignite coal including 371 million tonnes in the proven reserve category.
The Placing was coordinated by Libertas Capital Corporate Finance Limited who have agreed to take most of
their fee in the form of a £50,000 loan note and the issue of 5,833,333 new ordinary shares, representing
3.58 per cent of the Company's issued share capital as enlarged by the Placing. The loan note is interest
free and repayable on the earlier of a liquidity event or 12 months.
The Shares were placed with both new and existing institutional and private investors. The Placing is
conditional on admission of the Placing Shares to trading on PLUS. It is expected that Admission will
become effective and that dealings in the Placing Shares will commence at 8.00 a.m. on 29 June 2010.
The Placing Shares will represent approximately 21.31% of the enlarged issued share capital of the Company.
The Placing Shares will be fully paid and will rank pari passu in all respects with the existing ordinary
shares of 1p each in the Company. The total number of ordinary shares in issue following completion of the
Placing will be 162,916,000, of which the Directors are interested in 29,638,291 shares which represent
18.19% of the issued share capital.
The above figure of 162,916,000 ordinary shares may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if they are required to notify their interest
in, or a change to their interest in, Oracle under the FSA's Disclosure and Transparency Rules.
Shahrukh Khan, Chairman of Oracle Coalfields commented:
"I would like to thank our shareholders for their continued support. Despite the challenging investment
markets, the funds raised will provide the additional working capital to complete the Bankable Feasible
Study stage and confirm the potential of the project and subsequent development.
"To generate short-term cashflow, we signed an MOU in January 2010 with Lucky Cement Limited, one of the
major cement companies in Pakistan with the aim to enter a Coal Supply Agreement. Currently, the major
manufacturers import coal at international prices. As a result, a number of these cement manufacturers are
keen to switch to domestic coal supplies and are prepared to enter long term supply agreements.
"The Company also entered into an MOU with Karachi Electric Supply Company (KESC), a major local power
utility, with the aim of establishing a Joint Development Agreement for the development of a mine mouth
power plant.
"We are moving forward in our ambition to become a leading coal producer in Pakistan. We hope to play an
effective role in providing a substantial supply of indigenous feedstock for the country's desperate energy
needs as well as save the country from the foreign exchange burden of imported fuel.
"I look forward to updating our shareholders on our progress in the forthcoming AGM, to be advised
shortly".
28 June 2010
The Directors of Oracle are responsible for the contents of this announcement.
ENQUIRIES:
Oracle Coalfields PLC
Shahrukh Khan, Chairman
Telephone: +44 (0) 1366500722
Email: s.khan@oraclecoalfields.com
St Helens Capital Partners LLP
Duncan Vasey or Mark Anwyl
Telephone: +44 (0) 20 7368 6959
St. Swithins PR Limited
Gary Middleton
Telephone: +44 (0) 20 7868 2010
Oracle Coalfields plc
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