Environmental Clean Technologies Limited is pleased to provide the following update to shareholders in relation to delivering on the key objective of constructing the Coldry Commercial Demonstration Plant (CDP).
- Capital Raising – establishment of a Strategic Deliverable Bond to support the work being undertaken by Arup
- Government Grant application submitted
Strategic Deliverable Bond
ECT has executed an agreement in favour of its engineering development partner ARUP for the placement of a Strategic Deliverable Bond for up to $2,500,000 in order to deliver the balance of the Design for Tender (DFT) program and other pre-construction engineering works associated with the development and delivery of the Coldry technology.
The key terms of the Bond are:
Amount: Up to AU$2,500,000
Term: 12 months
Interest Rate: 0%
Convertibility: ESI shares will be issued at a price of 90% of the lowest VWAP of the preceding 5 days trade
The Bond provides ECT the option, should it elect to take up, to satisfy Arup invoices with cash (within certain limits).
Mr Michael Davies, Executive Chairman, commented “This purpose built Strategic Bond ensures the timely delivery of the balance of the DFT program and provides for additional engineering works in support of the delivery of Coldry. ARUP is a key strategic partner in the development of the Coldry technology and the Bond is an innovative instrument that is linked to the delivery of definitive outcomes.”
We believe the acceptance of the Bond by Arup sends a clear message of confidence in the commercialisation of our unique technology and builds upon our longstanding relationship with one of the world’s best engineering firms.”
ECT wishes to acknowledge the efforts of our financial advisors, Greenard Willing, for their support in preparing and delivering on this capital initiative. Greenard Willing will receive a 3% fee for their services.
Advanced Lignite Demonstration Program (ALDP)
Following on from the detailed announcement on 6 August 2012 regarding the Advanced Lignite Demonstration Program (ALDP), ECT is pleased to advise that it has submitted a detailed Expression of Interest (EOI) in accordance with the program requirements.
The ALDP is a $90M government funding package aimed at promoting technology innovation and development in order to advance pre-commercial lignite upgrading technologies capable of delivering on government policy objectives around economic, energy and climate security by reducing end to end carbon dioxide emissions associated with lignite use through enhancement of the vast energy resource in the Latrobe Valley.
Mr Davies commented, “The lodgement of our Expression of Interest is an important ‘first step’ in our application for funding under this major government initiative. I wish to thank the ECT team and our advisors for the considerable effort in the delivery of our submission”
An independent panel appointed by the Department of Primary Industries will review the EOI, and the outcome of this ‘first step’ advised mid-December 2012. Shortlisted applicants are then required to submit a detailed application by mid-March 2013.
Mr Davies added “The issuance of the Strategic Deliverable Bond to ARUP ensures that we have world class engineering support in the development of a detailed application for ALDP funding should our EOI be successful, and the delivery of our Design for Tender program; two significant achievements for ECT”.
Additionally, capital raising activities previously announced in relation to Monash Capital Group are progressing in tandem to the above and will be the subject of further announcements.
For Further Information Contact:
Mike Davies – Executive Chairman & Managing Director +61 3 9909 7684 or [email protected]