Environmental Clean Technologies Limited (ASX: ESI) (ECT or Company) is pleased to provide the following update to shareholders.
- Emissions Reduction Fund submission lodged
- Strategic Deliverable Bond Term extended to February 2014 providing access to remaining $350,000
Emissions Reduction Fund Submission
The Federal Government recently called for public comment on the design of a key aspect of its Direct Action policy, the Emissions Reduction Fund (ERF).
ECT submitted non-confidential feedback that focused on:
- The opportunity to achieve large-scale reduction of CO2 emissions from Victorian Brown Coal energy production via pre-combustion drying;
- The opportunity to reduce CO2 emissions from crude iron and steel production via alternative, lignite-based smelting;
- Flow on benefits from use of dried lignite in energy and iron production;
- The need for fund transparency and project outcome reporting; and
- A weighting mechanism within the system to support innovative technologies capable of delivering least cost abatement
The next step in the Federal Government’s fund design process is to issue a green paper in December to set out preferred options for the design of the fund based on public feedback.
ECT will continue to represent the technical and economic benefits of both Coldry and Matmor to achieving least-cost abatement.
Capital Management - Strategic Deliverable Bond Term Extension
ECT initially executed an agreement in November 2012 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 Bond amount was extended by $1,400,000 on 5 July 2013 to fund the final engineering packages delivered by Arup on 20 August 2013.
Following the completion of the work by Arup, $350,000 of the $3,400,000 Bond remained and was due to expire yesterday (21 Nov 2013).
ECT and Menzies Securities have agreed to extend the expiry term of the Bond. All other terms remain the same as the original Bond.
While it is the Board's preference to not use this form of funding it is prudent to ensure that access does not automatically lapse, enabling ongoing access to the balance of the Bond and providing maximum capital management flexibility to the Board.
Key aspects of the extension:
- New term expiry – 28 February 2014
- May be extended further by mutual agreement
- Access is at ECT’s discretion on the terms are outlined below:
- Amount: Up to AU$350,000
- Interest Rate: 0%
- Convertibility: ESI shares will be issued at a price of 90% of the lowest
VWAP of the preceding 5 days trade
For further information contact:
Ashley Moore – Managing Director
+61 3 9909 7684 or [email protected]