Oracle Power Inks Mining Deal for Northern Zone Gold Project

Oracle Power PLC (LON:ORCP) announced a binding Right to Mine and Co-Operation Agreement for its Northern Zone Gold Project in Western Australia, sending positive signals to the market.

The agreement with MEGA Resources Pty Limited promises full funding for operations, potentially unlocking significant value for Oracle.

Oracle Power shares surged over 42% on the news.

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Under the terms of the agreement, MEGA Resources, in partnership with BGR Mining & Infra Limited, will cover 100% of the development and mining costs. The project owners, Oracle (20%) and Riversgold Limited (80%), will receive 50% of the profits generated.

This arrangement is said to significantly de-risk the project for Oracle, eliminating the need for upfront funding.

The Northern Zone, located near Kalgoorlie, has already shown promising signs with drilling identifying a gold mineralised porphyry.

Plans are underway for further drilling to expand on known gold mineralisation. 10% of monthly profits will be reinvested into grade control and step out drilling – funded on a 50/50 basis with MEGA Resources.

The partnership aims to commence mining operations in the first quarter of 2026, pending final approvals and the signing of an Ore Purchase Agreement with a third-party processing mill. MEGA Resources, an established mining services provider, will handle geological and engineering services, as well as project approvals.

CEO Naheed Memon stated, “This is an outstanding deal for Oracle as it accelerates the mining of prospective gold deposits and removes the funding requirements on Oracle whilst providing a share of potential profits at our Northern Zone Kalgoorlie Gold Project.”