LOI Payment & Related Party Transaction
4 June 2020
Oracle Power Plc / EPIC: ORCP / Market: AIM / Sector: Mining
Oracle Power PLC
("Oracle", the "Company" or the "Group")
LOI Payment Received from HH Private Office
Related Party Transaction
As announced previously, in March 2020, Oracle submitted an application, on behalf of the Consortium (as described below), to the Private Power and Infrastructure Board ("PPIB"), for a Letter of Intent ("LOI").
The Consortium comprises Oracle, China National Coal Development Company Ltd. ("China Coal") and Sheikh Ahmed Dalmook Al Maktoum Private Office One Person Company LLC ("HH Private Office"), the private office of His Highness Sheikh Ahmed Bin Dalmook Juma Al Maktoum.
Pursuant to the Consortium Agreement (please refer to Oracle's announcement of 19 February 2020), it was envisaged that each member of the Consortium would contribute its pro rata share (based on the proposed equity shareholdings set out in the Consortium Agreement) of the costs associated with the LOI application, being certain fees owed to PPIB, the first of which is an evaluation fee of $50,000 ("Evaluation Fee").
The Company settled the Evaluation Fee in full and yesterday received a payment of US$7,491 from HH Private Office, being its c.15% share of the Evaluation Fee (the "HH Payment"), reinforcing its support for the development of Thar Block VI. On issuance of the LOI, further fees will be payable to PPIB. Further announcements in this regard will be made as and when appropriate.
The issuance of the LOI will be a major step in the development of Thar Block VI and would confirm the Government of Pakistan's commitment to purchase power from Thar Block VI.
HH Private Office is a substantial shareholder of the Company, as defined by the AIM Rules for Companies ("AIM Rules"). Accordingly, the HH Payment constitutes a related party transaction pursuant to AIM Rule 13. The Directors of the Company, having consulted with the Company's nominated adviser, Strand Hanson Limited, consider the terms of the HH Payment to be fair and reasonable insofar as the Company's shareholders are concerned.
**ENDS**
For further information:
|
Oracle Power PLC Naheed Memon |
+44 (0) 203 580 4314 |
|
Strand Hanson Limited (Nominated Adviser) Rory Murphy, James Harris, Jack Botros |
+44 (0) 20 7409 3494 |
|
Brandon Hill Capital Limited (Joint Broker) Oliver Stansfield |
+44 (0) 203 463 5000 |
|
Shard Capital (Joint Broker) Damon Heath Isabella Pierre
St Brides Partners Limited (Financial PR) Susie Geliher Catherine Leftley |
+44 (0) 20 7186 9952
+44 (0) 20 7236 1177 |
This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014 and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.
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