21st Nov 2013 10:44
LONDON (Alliance News) - Oracle Coalfields PLC Thursday said it has signed a memorandum of understanding with Chinese power group SEPCO Electric Power Construction Corp. for the development of a 600 megawatt coal-fired power plant.
The lignite-coal developer in Pakistan said the deal, at Block VI in the Pakistani Thar Coalfield, is for an initial period of six months, during which a technical feasibility study and an environmental impact study will be prepared relating to the development of a coal-fired power plant.
Oracle said the study will include plans to finance up to 70% of the debt for the power plant and provide significant equity funding in Oracle's subsidiary, Sindh Carbon Energy Limited, to secure a significant minority shareholding.
The company did not mention any financial figures related to the deal.
Oracle Coalfields shares were up 37% to 2.70 pence, putting it top of the AIM movers Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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