Non- Binding MoU signed with HH Private Office
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 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 |
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.
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