Oracle Power Secures Fully-Funded Gold Mining Agreement with Mega Resources

Fully funded mining deal brings Northern Zone closer to production

Oracle Power has signed a binding Right to Mine and Co-Operation Agreement for the Northern Zone Gold Project, 25 km east-south-east of the Kalgoorlie Super Pit in Western Australia. The deal brings in MEGA Resources and Bain Global Resources Pty Limited (BGR Pty) to fully fund and operate the project, with profits split 50/50 between the contractors and the Project Owners (Riversgold 80%, Oracle 20%).

This is a capital-light route to first mining. No upfront funding is required from Oracle or Riversgold, while MEGA Resources will provide the mining services, geological and engineering support, and manage project approvals. First ground-breaking is targeted for the first quarter of 2026, subject to final tenement permissions, mining approvals and a binding Ore Purchase Agreement with a third-party processing mill.

Key terms of the MEGA Resources agreement

Funding	MEGA Resources and BGR Pty will pay 100% of development and mining costs, including haulage, haul road maintenance and processing costs.
Profit split	50% to MEGA Resources/BGR; 50% to the Project Owners.
Oracle’s look-through share	Oracle owns 20% of the Project Owners’ interest. This implies 20% of the Project Owners’ 50% profit share – i.e. 10% of project-level profit.
Reinvestment	10% of monthly profits (funded on a 50/50 basis) will be reinvested into grade control and step-out drilling.
Timeline	MEGA is aiming to break ground in Q1 2026, subject to final permissions, mining approvals and an Ore Purchase Agreement.
Ownership	Riversgold 80%, Oracle 20% (unchanged).

Why this matters for Oracle shareholders

• Non-dilutive and de-risked: No upfront capital outlay from Oracle, with a contractor taking on the funding, mining and logistics. That reduces balance sheet risk and avoids near-term equity dilution.
• Pathway to cash flow: Aiming for Q1 2026 ground-breaking puts a line of sight on first operations, subject to approvals and a processing deal.
• Aligned incentives: A 50/50 profit share with the contractors keeps everyone focused on grade, recovery and costs. The 10% monthly profit reinvestment supports grade control and resource growth.
• Look-through economics: With a 20% interest in the Project Owners’ 50% share, Oracle’s implied interest is 10% of project-level profits. It is a smaller slice than owning and funding outright, but achieved without capital burden.

Approvals and dependencies to watch

• Final tenement permissions and mining approvals – these are gating items before breaking ground.
• Binding Ore Purchase Agreement with a third-party processing mill – this is essential to monetise ore. An ore purchase agreement is a contract to sell mined ore to a processor on agreed terms.
• JV documentation – the earn-in provides for a joint venture agreement to be documented by 31 December 2025 at the latest.

Geology, drilling and metallurgy – what we know so far

Northern Zone hosts a porphyry-style system within a tonalite-trondhjemite intrusion (TTI) in the Canon Shear zone. Drilling has identified a gold-mineralised porphyry around 600 m wide and around 500 m deep from diamond drilling. The mineralisation is described as horizontal, which has implications for drilling orientation and potential open-pit mining geometry.

Selected intercepts reported to date include:

• 18 m at 4.14 g/t Au from 36 m (NZRC001)
• 10 m at 8.89 g/t Au from 46 m (NZAC127)
• 6 m at 6.12 g/t Au from 35 m (NZRC012)
• 5 m at 12.27 g/t Au from 32 m (NZAC062)
• 16 m at 4.49 g/t Au from 30 m (NZAC033)

Metallurgical bottle-roll tests on oxide material returned gold recoveries between 90.64% and 94.7% across five samples, averaging 92.56%. High recoveries at this stage are encouraging, though broader metallurgical work across ore types will be important as the project advances.

Exploration Target is large but early-stage

The current Exploration Target is 200 Mt to 250 Mt at 0.4 g/t Au to 0.6 g/t Au, for 2.5 Moz to 4.8 Moz of gold. An Exploration Target is a conceptual estimate based on limited information – it is not a mineral resource or reserve. Further drilling is required to define continuity, grade distribution and mineability.

Who are the partners behind the funding?

MEGA Resources is a Western Australian mining contractor with in-house mining, engineering and geology capabilities. Funding is supported through BGR Pty, linked to BGR Mining & Infra Limited in India. BGR is described as one of India’s largest private mining companies, with a net worth of half a billion AUD and an order book exceeding AUD 16 billion, with contracts extending for the next 25 years. The scale and longevity of BGR’s operations add credibility to the funding line for Northern Zone.

Balanced take – the positives and the watch-outs

• Positives: Fully funded, no upfront spend for Oracle; experienced contractor-operator; clear target to mobilise by Q1 2026; strong initial metallurgy; ongoing reinvestment in drilling and grade control.
• Watch-outs: Multiple approvals still required; the Ore Purchase Agreement must be signed; the JV agreement is yet to be documented; the project remains at the Exploration Target stage, not yet a JORC resource; profitability will hinge on grade control, recoveries and processing terms.

What could come next

• Detailed mine plan and scheduling from MEGA Resources, including grade control strategy.
• Execution of the Ore Purchase Agreement with a third-party processing mill.
• Regulatory milestones – final tenement permissions and mining approvals.
• New drilling to test extensions of known mineralisation and refine the model.
• JV documentation by 31 December 2025, clarifying project governance and cost/profit mechanics.

Key numbers at a glance

Ownership of Northern Zone	Riversgold 80% / Oracle 20%
Funding of operations	100% by MEGA Resources and BGR Pty
Profit split	50% to MEGA/BGR, 50% to Project Owners
Oracle’s implied profit share	10% of project-level profit
Reinvestment	10% of monthly profits to grade control and step-out drilling
Metallurgy (oxide)	90.64% – 94.7% Au recovery (avg 92.56%)
Exploration Target	200 – 250 Mt at 0.4 – 0.6 g/t Au for 2.5 – 4.8 Moz
Target start	Q1 2026, subject to approvals and Ore Purchase Agreement

My take

This looks like a smart, capital-light push towards first mining at Northern Zone. The contractor-funded model trades some upside for speed and certainty, which makes sense given the stage of the project and the need to prove up mineable ounces and cash flow. The big levers now are approvals, the Ore Purchase Agreement and continued drilling to tighten the model.

If the team hits those milestones, Oracle could transition from explorer to project partner with a slice of operating profit, without having to pass the hat. That is the sort of risk-sharing structure retail holders often want to see. As ever, delivery will do the talking.