Ann: Becoming a substantial holder, page-5

https://wcsecure.weblink.com.au/pdf/CNQ/02714411.pdf
21 September 2023
Clean TeQ executes agreement to acquire ATA®
accelerated dewatering technology, as part of targeted
expansion into the global mine tailings management
industry
Highlights:
• Clean TeQ exercises option to purchase accelerated dewatering technology ATA®
from US-based Soane Labs LLC.
• ATA® represents a step change to both the economics and environmental
sustainability of global mine tailings management by:
o delivering rapid separation of water and solids from both in-process and in situ
tailings;
o producing stackable dry tailings without the high capital and operating cost of
mechanical compression commonly used in the market; and
o recycling process water for reuse in operations, including the potential to recover
dissolved metals otherwise lost to waste.
• Economically efficient and environmentally sound tailings rehabilitation is a recognised
priority for the mining industry, as companies increasingly emphasise sustainable
metal production, reducing legacy issues and improving social licence to operate.
• Clean TeQ’s proposed acquisition of ATA® represents an important strategic step in
its targeted expansion into the global mine tailings rehabilitation and metal recovery
industry.
Peter Voigt, CEO of Clean TeQ Water Limited (ASX: CNQ, the Company or Clean TeQ), is
pleased to announce Clean TeQ has exercised the option to purchase the accelerated
dewatering technology (ATA®) from Soane Labs LLC (Soane Labs).
Commenting on the transaction, Mr Voigt said:
“ATA® represents a step change for the mining industry in economically and
sustainably managing current and future mine tailings. We have been working with the
ATA® technology for over 12 months and are satisfied that it has the potential to
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change the way mine tailings are processed for mine rehabilitation. ATA®
complements Clean TeQ’s market-leading metal extraction technologies and enables
the Company’s strategy to become a leader in the global mine tailings management
industry in the rapidly growing global mine tailings management industry.”
The ATA™® technology was developed to offer a secure and low-cost mine tailings treatment
process by rapidly separating water and solids to produce stackable dry tailings and recycled
water. The technology uses smart chemistry to rapidly agglomerate the solids in ore slurries.
The solids dewater under their own gravity, removing the need for high capital and operating
cost pressured filtration used in the industry today. The resulting materials can be
compressed and stacked, with the extracted water being returned to recycle (or sent for
recovery of dissolved metals), dramatically reducing water usage. In underground mining
operations the compact material may also be used for backfilling, with or without cement.
Mine waste dewatering presents an enormous market opportunity for Clean TeQ. Tailings
management is a significant environmental and safety challenge for the industry, particularly
for mines in tropical climates where natural evaporation rates are low, or where seismic
activity increases geotechnical risks. As environmental bonding requirements increase in
response to higher perceived risk in managing tailings storage facilities, ATA®’s unique rapid
and low-cost dewatering offering will enhance the mining industry’s environment credentials
while lowering operating and mine site rehabilitation costs.
Purchase Agreement
On 9 August 2022 the Company announced the signing of the exclusive global technology
licence agreement (License Agreement) with Soane Labs for the ATA® technology. The
License Agreement provided Clean TeQ with an exclusive global licence to exploit the ATA®
technology, with an option to purchase the technology, at Clean TeQ Water’s discretion and
at a pre-agreed value, within 18 months of signing.
In accordance with the License Agreement, the Company has decided to exercise the option
to purchase the ATA® technology and entered into a Purchase Agreement on 20 September
2023 through a 100% scrip issue for a total consideration of A$3 million.
Soane Labs will be issued with fully paid ordinary shares in the Company ("Consideration
Shares"), on or about 27 September 2023, being the intended Completion Date. The
Consideration Shares will be placed in voluntary escrow for 12 months, as per a Restriction
Agreement signed between the Company and Soane Labs LLC.
The share price used for determining the scrip consideration was (0.4179) being the volume
weighted average price of the Company’s shares for the 10 trading Days’ immediately
preceding the date on which the Purchase Agreement was signed. Accordingly, 7,178,033
Consideration Shares will be issued and maintained on the Company’s Issuer Sponsored Sub-
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register. The Consideration Shares will be issued under the Company’s existing 7.1
placement capacity.
Completion of the acquisition is subject to a number of pre-completion steps, which each
party is in the process of satisfying. The Purchase Agreement is not subject to any conditions
precedent.
Once the Purchase Agreement has been executed the Licence Agreement will terminate.
Either party may terminate the Purchase Agreement by notice to the other party if any matter
existing or occurring on or before the Effective Date or arising or occurring afterwards that
constitutes a material breach by the other of the Agreement, a material breach of the
warranties provide by Soane or a Material Adverse Effect.
Next steps
Mine tailings management represents a major growth opportunity for Clean TeQ. ATA® will
be deployed in conjunction with the Company’s proprietary metal extraction technologies
(Clean-iX®) as part of a strategy to provide the mining industry with a holistic mine tailings
rehabilitation solution that delivers:
- best-in-class tailings management, via future partnerships with both potential customers
and experienced tailings management teams;
- market leading technologies that provide a step change in the economic and
environmental sustainability of mine tailings management; and
- dry stacked and minimal footprint tailings solutions for current and legacy wet tailings
sites, including the ability for underground backfill.
Clean TeQ is planning pilot-scale testing at several sites in the coming months leading to full
scale commercial implementation.
The demand for advanced tailing management services is driving a strategy that will require
a new and focused entity to service the market’s needs. Planning to establish this new entity
are well advanced.