Oracle Power Retains 20% Stake in Northern Zone Project
Why we think this is neutral
The RNS announcement regarding Riversgold exercising its option to acquire an 80% interest in Oracle Power's Northern Zone project does not appear to have a material financial impact on the company's core thermal coal business. While the update on the non-core asset is positive, with Riversgold funding the project's advancement, there are no details provided on the potential value or significance of the Northern Zone project to Oracle Power's overall operations and financial performance.
Key Points
- Riversgold exercises option to acquire 80% of Northern Zone project
- Oracle retains 20% interest and will be carried until JV agreements are finalised by 31 December 2025
- Riversgold to fund and advance the project, including drilling, mining lease application and mineral resource estimate
Summary
Oracle Power PLC (AIM:ORCP), an international project developer, has announced that ASX-listed Riversgold Limited has exercised its option to acquire an 80% beneficial interest in Oracle's Northern Zone Project located in Western Australia. Oracle will retain a 20% interest and be carried until the joint venture agreements are formalised by 31 December 2025. Riversgold will be responsible for advancing the project, including drilling, mining lease application, and a mineral resource estimate.