Oracle Power PLC (LON: ORCP) have seen their shares rally after the firm confirmed overseas investment from a UAE Sheikh.
Oracle Power is an AIM listed coal developer. The Company’s primary interest is the Thar Coalfield Block VI area located in the Sindh Province of South East Pakistan, a 1.4bn tonnes resource with a 529Mt JORC mineral resource and 113Mt JORC proven reserves within Phase 1 of the mining area of its mining lease.
Shares of Oracle Power have rallied 74.47% to 0.41p. 28/11/19 13:44BST.
In the industry, competitors such as AFC Energy (LON: AFC) and i3 Energy (LON: I3E) have seen their shares crash in the last week.
Additionally, Cairn Energy (LON: CNE) and (LON: XPP) saw their shares drop after modest respective trading updates.
Oracle confirmed that said the private office of Sheikh Ahmed Bin Dalmook Al Maktoum has agreed to invest £500,000 in a £700,000 placing priced at 0.25 pence per share.
The placing was arranged by Brandon Hill Capital Ltd. If shareholder approval is granted, the private office will hold 200 million shares in the lignite mineral resource and mine mouth power plant developer. It will also be issued with 300.0 million warrants exercisable at the same 0.25p price for a two year period.
Once both placing stage are complete, the private office will hold an approximately 11.5% stake in Oracle Power’s share capital.
Oracle Power has raised the other £200,000 of tis £700,000 placing from other investors, including a £40,000 subscription by Chief Executive Naheed Memon and £10,000 subscription by Chair Mark Steed.
Memon said: “We are honoured and delighted to welcome His Highness Sheikh Ahmed Bin Dalmook Al Maktoum as a shareholder in Oracle. His extensive network and global relationships are expected to help the company as it seeks to unlock the inherent value of Block VI and its sizeable coal resources.
“As stated previously, Oracle is engaged in ongoing discussions with other state-owned enterprises in both Pakistan and China which have expressed a willingness to provide financial and technical support in the event Block VI was included in a coal gasification to fertiliser initiative, which has now been acknowledged by both governments. Following today’s announcement, the company will now seek to advance these discussions towards a positive conclusion.
“We believe this is a truly exciting time for the company and I look forward to updating the market on subsequent developments.”