Environmental Clean Technologies Limited (ESI) wishes to announce a revision to its proposed Share Purchase Plan (SPP). Details of the SPP were announced on 2 February 2009.
After reviewing the company’s cash needs and capital requirements, the Board has determined to reduce the maximum raising under the SPP to 175 million shares ($3.5 million). Applications in excess of this amount will be scaled back on a pro rata basis.
Environmental Clean Technologies Limited (ESI) wishes to announce a revision to its proposed Share Purchase Plan (SPP). Details of the SPP were announced on 2 February 2009.
After reviewing the company s cash needs and capital requirements, the Board has determined to reduce the maximum raising under the SPP to 175 million shares ($3.5 million). Applications in excess of this amount will be scaled back on a pro rata basis.
Environmental Clean Technologies Limited (ESI) has signed a Heads of Agreement with Vietnamese based Thang Long Investment (TL), to establish a plant for the production of 20M tonnes per annum of Coldry, black coal substitute, over the next 30 years.
The Coldry Process is the world’s first economic method for dewatering brown coal, creating a high energy pellet with significantly reduced CO2 emissions compared to brown coal, while being suitable for export as a black coal substitute.
This agreement provides for ECT to contribute access to the Coldry IP, plant designs and expertise, and TL shall be responsible for contributing all required capital in exchange for exclusive rights to sell the Coldry pellets to its client base, mostly in southern China. TL has also committed to fund all required financial feasibility studies and to include ECT’s construction and operation partners in the project.
The agreement is a massive deal for the company, the state of Victoria and the brown coal industry and enhances shareholder value by laying the foundations for ECT’s first viable and sustainable revenue stream.
ECT Chairman Dave Woodall said the company would receive A$5 royalty per tonne of Coldry sold and had successfully negotiated 10% free carry equity in the SPV, which will be undiluted in the future by capital inflows or other events.
“We have always been confident in the commercial viability of our Coldry technology and that it is a practical method for dewatering the world’s abundant reserves of brown coal to produce quality black coal substitute,” he said.
The deliverables of the project will be met in four phases, starting with a Coldry plant that will produce 2M t.p.a within three years of commencing construction, finally reaching 20M t.p.a (estimated by 2020). The preferred site for this plant is located in the La Trobe Valley, Victoria, but final selection will largely depend on the State’s willingness to substantially expand its rail and port infrastructure and the power industry’s preparedness to commit to provide lignite and heat in a timely manner.
