jv

Anyone know how the JV will work if CNM gets the REDP grant?

As I understand it:
- planned demonstration plant (50MW) will cost circa $300M
- funding will be $50M from grant (hopefully) + $250M from Investec

So what % of the JV will CNM own? And will the $250M Investec contributes be equity / debt or a combination?

This is quite significant given CNM market capital being $111M at the moment. The grant will mean that
a) The get (my assumption) 10-20% of a $300M venture due to the grant
b) Income (or further equity) from developing the plant because the JV will utilize their staff / skills / products
c) Ongoing cash flow once the plant is producing electricity (much shorter time frame than expanding a geothermal plant)

On top of this they get to demonstrate their technology to the rest of the world which is perhaps even more significant than the immediate cash gains.