Oracle Coalfields narrowed its annual losses as the company made progress on its lignite mineral property in the south-eastern desert of Sindh Province, Pakistan.
The coal explorer reported an operational loss of £0.75m for the year ended December 31st 2012, down from £0.95m a year earlier.
During the year, the company advanced on the Pakistan mine with the issuance of the mining lease, the signing of a joint-development agreement with Karachi Electric Supply Company and the preparation of an implementation plan to proceed with mine development and production.
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At the end of the year, the group had cash and cash equivalents of £0.99m, compared to £1.6m a year earlier.
Total assets less current liabilities came to £3.52m, down from £4.23m in 2011.
"Oracle has therefore now put in place the building blocks for project implementation and is in active discussions with potential strategic partners, developers and potential contractors to develop both the mine and a mine mouth power plant with support of the provincial and national governments," Chief Executive Officer, Shahrukh Khan, said.
"An integrated mine and power plant development will provide security to partners and investors through transparent coal pricing arrangements and a long term power purchase agreement for at least 30 years."
He said the development of the coalfield would alleviate a power shortage in the country and supply competitive electricity.
Early this year £0.93m extra capital was raised, including contributions from shareholders and management, to cover its working capital requirements throughout 2013.
However, additional funds will be required to develop the Block VI coal mine. The group now looking at options to raise debt and equity. It is in talks with potential investors and technical partners from the Middle East and Far East.
RD
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