Oracle Power Completes Acquisition of Copper and Silver Project in Western Australia

Oracle Power PLC has recently made a significant move by securing an exclusive option to acquire a copper and silver mining project situated in the Ashburton Basin, Western Australia. This development comes as Oracle Power, the international project developer, entered into an option and sale purchase agreement with Mining Equities regarding the Blue Rock Valley Copper and Silver Project.

Spanning an expansive area of approximately 102 square kilometers, the project tenement comprises 32 Blocks and is constituted of one exploration license, E08/3604, solely owned by Mining Equities. This license, granted on 2 October 2023, is set to expire on 26 October 2028 but is subject to renewal. Initially, the term spans five years, with an option for an additional five-year extension, followed by subsequent extensions of two years each. At the conclusion of the sixth year, 40 percent of the license area is slated for surrender.

The agreement stipulates that Oracle Power will pay a fee of £30,000 to Mining Equities in consideration for the option, through the issuance of approximately 136,986,301 new ordinary shares. This valuation is determined based on the volume-weighted average price (VWAP) for the five-day period immediately preceding the signing of the agreement. The option spans 45 days from the date of execution of the agreement.

During this option period, Mining Equities is obliged to exert all reasonable efforts to furnish Oracle Power with the requisite data and relevant information concerning the tenement to facilitate the due diligence process. Should Oracle Power opt to exercise the option to acquire a 100 per cent interest in the tenement, it will pay a consideration of £200,000 to Mining Equities. This payment will be made through the issuance of a further approximately 913,242,009 new ordinary shares, determined using the five-day VWAP.

However, the transfer of the tenement from Mining Equities to Oracle Power will be subject to and contingent upon Oracle Power obtaining the prior written consent of the Western Australian Minister of Mines and Petroleum. Furthermore, any issuance of new ordinary shares to Mining Equities under the terms of the agreement will be subject to a three-month lock-in period from their date of issue.

Mining Equities has refrained from disclosing any formal financial statements subsequent to its acquisition of the tenement. However, it has accrued expenses related to the tenement, amounting to AU$53,830, all of which have been incorporated into its unaudited management accounts.

The findings from historical drilling and rock chip sampling at the site indicate the existence of high-grade copper and silver mineralization, alongside potential traces of uranium.

Oracle Power's decision to explore this venture is backed by promising findings from historical drilling and rock chip sampling at the site, indicating the presence of high-grade copper and silver mineralization, with potential traces of uranium. These findings, combined with electromagnetic geophysics studies, have identified various drill targets at the site, underscoring its prospectivity for base metals and silver deposition.

Naheed Memon, CEO of Oracle, expressed enthusiasm about the opportunity presented by the acquisition of this significant base metal and silver project in Western Australia. He emphasized that thorough due diligence would be conducted in the upcoming weeks, followed by an evaluation of the most suitable exploration methodologies by the technical team.

Memon highlighted the project's potential, noting its proximity to gold-rich areas such as the Eastern Hills Gold Project, located 11km to the north, and the renowned Paulsen Gold Mine, situated 42km to the north-northeast. Additionally, he mentioned nearby uranium projects, including Paladin’s 25.9Mlb uranium project and Cauldon’s 30.9Mlb uranium deposit, suggesting the presence of sediment-hosted uranium near hot granites within the Ashburton Basin.