Ann: Exergen Progresses Large Scale Demonstration, page-23

re: Ann: Exergen Progresses Large Scale Demon... Pimpmystock, take the time to read the following very carefully to to bottom -


From recent announcements -


Demonstration Plant

6.12. Exergen are currently planning and designing a 50 tph Demonstration to demonstrate the processing abilities of the CHTD technology for higher volumes of LRC. Exergen has a memorandum of understanding in place with EBAC, to use the Commercial Road, Morwell site to host the Demonstration Plant in the event that its construction is to proceed.

6.13. Significant capital will be required in order for Exergen to complete construction of the Demonstration Plant
and Exergen anticipates raising these funds by way of an equity capital raising in the short to medium term.


and -


Each Cornerstone Investor has agreed to assist Exergen in seeking to obtain a coal licence from the Victorian Government (“Coal Licence”) and maximising State and Federal Government assistance in regard to the development and commercialisation of the CHTD technology. In this regard, Exergen is party to agreements with each of the Cornerstone Investors which we summarise in the table below.


Tata

Tata is India?s largest
power utility company.


? Tata has invested $10million in exchange for shares in Exergen.

? Tata has the option to acquire an interest of up to 25% in LV-NG Pty Ltd (a wholly owned subsidiary of Exergen) (“LV-NG”) upon LV-NG securing a Coal Licence in the
Latrobe Valley, if successful. The funds raised by LV-NG will be used to fund the Demonstration Plant.

? Subject to Tata electing to invest in LV-NG, LV-NG and Tata may enter into a coal off take agreement to acquire, on commercial terms, treated coal output from the Demonstration Plant.

? Exergen and Tata agreed to co-operate in developing the terms of an intellectual property licence agreement pursuant to which Tata would be granted the right to use
the Exergen Technology at an Indonesian coal site on a royalty free basis. Exergen Technology Pty Ltd and Trust Energy Resources Pte Ltd (a subsidiary of Tata) have
entered into an Intellectual Property Licence Agreement in this regard.


Theiss

Theiss is an Australian construction, mining and services contractor, and a wholly owned subsidiary of Leighton Holdings, the world?s largest supplier of outsourced mining
services

? Thiess has invested $2.5 million in exchange for shares in Exergen.

? If Thiess and Exergen (or a related body corporate of Exergen) enter into a construction contract for construction of the Demonstration Plant, Thiess will subscribe
a further $2.5 million in the Company (up to $0.72 million of which may be subscribed in advance).

? If Exergen (or a related body corporate of Exergen) obtains a Coal Licence and issues to Thiess a “notice to proceed” with respect to construction of a Commercial Plant:

A. Thiess will subscribe a further $5 million in Exergen (or the Company upon completion of the acquisition of Exergen and readmission of the Company to ASX);

B. Exergen and Thiess will co-operate in developing the terms of an intellectual property licence agreement pursuant to which Thiess will be granted the right to use the Exergen CHTD technology at an Indonesian coal site on a royalty free
basis.

? Exergen will negotiate exclusively with Thiess with the intention of engaging Thiess on a “preferred supplier” basis, on commercial terms, to provide construction and mining services in respect of the Demonstration Plant and the Commercial Plant.

? Thiess is entitled to receive the benefit of any carbon credits in proportion to its interest in Exergen (or the Company upon completion of the acquisition of Exergen).


Itochu

Itochu is one of Japan?s leading trading companies. They have extensive coal trading experience.

? Itochu has invested $5million in exchange for shares in Exergen.

? If Exergen issues a “notice to proceed” with respect to the Demonstration Plant and Itochu is satisfied that coal processed using the CHTD technology will meet the
requirements of the market, Itochu will invest a further $5million in Exergen (or the Company upon completion of the acquisition of Exergen and readmission of the Company to ASX).

? Itochu has the option to acquire an interest of up to 10% in LV-NG upon LV-NG securing a coal licence. The funds raised by LV-NG will be used to fund the Commercial Plant.

? If Itochu acquires a 10% interest in LV-NG:

A. LV-NG and Itochu may enter into a coal off take agreement or a coal marketing agreement, on commercial terms, in respect of treated coal output from the Commercial Plant in proportion to Itochu?s equity interest in LV-NG;

B. LV-NG and Itochu may enter into a coal sales representation agreement appointing Itochu as the exclusive marketing agent for Japan, Korea, Taiwan, Vietnam, the Philippines and Thailand (and the non-exclusive preferred marketing agent for the rest of the world) in respect of treated coal output from the Commercial Plant; and

C. subject to Itochu entering into a coal off take or marketing agreement (as described above), Itochu may appoint a director the board of LV-NG.

? Subject to the further investment of $5million described above, Exergen will offer a first right to Itochu to participate in other coal projects in which the CHTD technology is used.

? Itochu will be entitled to receive any greenhouse gas or carbon credits in proportion to its interest in LV-NG.


Sedgman

Sedgman is an ASX listed provider ofmineral engineering
solutions, with extensive experience in coal processing and materials handling technologies.

? Sedgman has invested $3 million in exchange for shares in Exergen.

? Sedgman has been granted:

A. an exclusive right to provide basic design services associated with all licence agreements entered into by Exergen relating to the CHTD process, provided Sedgman can provide the necessary services at a commercially reasonable rate; and

B. a non-exclusive global right to represent the CHTD technology and promote Sedgman?s delivery of the technology with third parties for opportunities not being
pursued by Exergen (subject to the parties negotiating and agreeing a reasonable distribution agreement).

? Sedgman will subscribe for a further $2 million in Exergen shares (or the Company upon completion of the acquisition of Exergen and readmission of the Company to ASX) at an issue price to be determined based on the market price of the Company?s Shares at the date of issue, provided that Exergen:

A. issues a “notice to proceed” with respect to the Demonstration Plant;

B. engages Sedgman to provide, on commercial terms, engineering and design services in respect of the Demonstration Plant; and

C. grants Sedgman the right to operate the Demonstration Plant.



Combine all of the above with this latest announcement by Mantle -



EXERGEN PROGRESSES LARGE SCALE DEMONSTRATION

ASX ANNOUNCEMENT 12 FEBRUARY 2014
_____________________________________________________________________________________

Mantle Mining Corporation Limited (ASX: MNM) is pleased to provide the following update on
activities in relation to clean coal technology group, and Bacchus Marsh Joint Venture partner,
Exergen Pty Ltd (Exergen)’s commercialisation pathway and large scale demonstration project.

Highlights:

? Exergen’s Continuous Hydro-Thermal Dewatering (CHTD) technology transforms low grade, high
moisture coals into cleaner burning products with lower carbon dioxide emissions. CHTD also
provides a long distance transportation solution for upgraded coal, via use of slurry pipelines.

? The company’s current focus is to prove CHTD at commercial scale by developing a $70 million
Pre-Commercial Demonstration Project PCDP, to be located in the Latrobe Valley. Exergen’s
cornerstone investors have already committed substantial funding (under certain conditions
precedent) towards the PCDP and the company has obtained an Advance Finding certificate from
AusIndustry that confirms that the PCDP activities are eligible for R&D Tax rebates.

? While Exergen can bring value to a number of downstream uses for upgraded brown coal,
collaborations with other proponents in the brown coal upgrading sector are being sought to reduce
process risk and development costs and expand product market potential for all parties. Exergen is
generating a high level of interest in this strategy due to its unique position as a low cost solution to
front-end dewatering, coal upgrading and overland transportation.

? The PCDP will be hosted by EnergyBrix Australia (EBAC) at the Morwell Power Station site in the
Latrobe Valley where Exergen has executed Site Lease and Site Services agreements with EBAC.

? An Alliance Contract between Exergen, Thiess and Sedgman for the PCDP has been drafted. A
draft contract for the design and construction of the PCDP has been completed by Thiess, and
Sedgman has provided a MOU for operation of the PCDP.

? Exergen is developing a plan to export coal products from the Latrobe Valley pending on success of
the PCDP. For this commercial project, Exergen CHTD slurry will be pumped through a pipeline to a
processing facility adjacent to a port location, where it will be dewatered and further processed into
valuable export products including thermal coal products, char, fertilisers, pyrolysis oils and liquid
fuels. Such liquid fuels can be used to feed Direct Injection Coal Engines (DICE).

? A preferred pipeline route from the Latrobe Valley to Crib Point (at the Port of Hastings) has been
defined and landholder consultation is expected to start within months (Figure 1).

Background:

? Mantle and Exergen are partners in a 50/50% Joint Venture (JV) to upgrade and commercialise the
Bacchus Marsh brown coal deposit (MNM ASX Release 2 July 2012).

? Exergen’s cornerstone investors include Tata Power, India’s largest private power utility, Itochu, one
of Japan’s largest trading houses with extensive coal trading experience, Leighton Holdings
subsidiary Thiess, the world’s largest supplier of outsourced mining services, and Sedgman, a
global specialist provider of mineral engineering solutions.

? The JV covers Exploration Licences (ELs) 5294 and 5323, located to the west of Melbourne. The
ELs contain a 1.6 billion tonne JORC Compliant Inferred Resource of brown coal (MNM ASX
Release 15 August 2012).

? A scoping study by Exergen shareholders, Sedgman Ltd and Thiess, found the coal export project
was economically viable and would generate substantial local employment. The study found that
the project would require an initial capital investment of $2 billion, delivering a Net Present Value of
$1.4 billion and a mine life of more than 25 years (MNM ASX Release 19 September 2012).



and this recently from Mantle -


"The Company notes however, that it continually explores ways to increase the value of its assets and, to
that end, is in confidential negotiations with potential investors/partners concerning the Company’s coal
projects. These negotiations target accelerated development of the Company’s coal assets and value
creation thereof. The potential counterparties include both domestic and offshore entities.

The negotiations are an incomplete proposal or negotiation at this point. No assurances can therefore be
given that any agreement between the parties will be concluded."



From all of the above we can see that -

Exergen have now formalised deals with EBAC etc.... for demo

Exergen's shareholders are right behind Exergen's moves forward with demo

Exergen need to partially raise money via the market for demo

Mantle are currently in confidential negotiations(and seemingly from above so are Exergen) to develop coal projects



Can anybody else see a fairly clear picture forming here?

It seems one of our recent new holders Harry can!


All above IMO so DYOR but please also read all of the above carefully as all is from ASX announcements.


Good luck

B Rubes