What happens to the 50% of the carbon credits that Woodside (Metasource) was entitled to buy (at a 25% discount to market) from the future production of GDY ?
Are WPL still entitled to the data from GDY, Do they still have the right to a director ??
Many questions, as yet few answers. May need to wait for the General Meeting!
Below is from the Annual Report
• Metasource has the right to participate pro rata to its then current shareholding in any further issue of equity in Geodynamics at the price payable by other parties at the time and otherwise on substantially the same terms and conditions.
• Metasource has a right to nominate a person to be appointed as a director of Geodynamics.
• Metasource and its related bodies corporate have full and continuous access to data produced or derived by Geodynamics through its activities in the development of its geothermal tenements and the development of hot dry rocks technology generally (subject to certain obligations of confidentiality).
• Metasource or its nominee has the right to purchase Environmental Credits from Geodynamics and the parties agreed to negotiate and enter into a formal purchase contract. Environmental Credits is defined broadly and includes renewable energy certificates, carbon credits and any other legal, commercial or other benefit (whether present or future) from any use of renewable energy arising directly or indirectly from the use of thermal energy or the generation of power from power plants developed by Geodynamics. On 31 March 2004 the Company announced that in conjunction with Metasource’s subscription for a further 1,111,111 fully paid ordinary shares at 90 cents, that it had executed an Environmental Credits Offtake Deed with Metasource which formalises Metasource’s rights to Environmental Credits.
• Metasource or its nominee has the right to buy all of the environmental credits which arise from 50% (capped at 1,300 GWh/year) of the power generated by Geodynamics’ power plant(s). Metasource is, however, not entitled to purchase Environmental Credits in the form of renewable energy certificates, unless either renewable energy certificates become an instrument which is used for purposes other than those currently prescribed in the Renewable Energy (Electricity) Act 2000 or Geodynamics does not claim the benefit of the environmental credits which Metasource is entitled to buy under the purchase contract other than by reason of there being no legal framework within which such benefits can reasonably be claimed.
• The price of environmental credits will be the lower of 75% of the then market price in Australia or the then market price minus $5/tonne. The purchase price of environmental credits cannot be less than zero. Subsequently, this condition has been varied following execution of an Environmental Credits Offtake Deed with Metasource on 31 March 2004 such that 12.5% of the Environmental Credits will be assigned to Metasource without separate consideration and the balance of 37.5% of credits can be sold to Metasource at full market value (therefore the weighted average effective discount for the credits remains unchanged at 25%).
• Metasources’ right to exercise its entitlements under the purchase contract is contingent on Metasource holding not less than its original share holding on 31 December 2005 or at the time that power is first generated by Geodynamics (whichever is the earlier) and having continuously held that original shareholding from the original date of issue of the Shares. Subsequently, this condition has been removed following execution of an Environmental Credits Offtake Deed with Metasource on 31 March 2004.
• If Geodynamics develops any of its tenements and/or geothermal exploration licences other than on a 100% basis, it must negotiate in good faith a partnering arrangement with Metasource under which Metasource must be offered a participation interest of between 20% and 50% in the development on terms no less favourable than those offered to other participants. Geodynamics has a similar right if Metasource considers developing a hot dry rock geothermal power project in Australia. These obligations end on the earlier of certain events including 7 years after listing or when Metasource ceases to hold a relevant interest in no less than 15% of the total issued share capital of Geodynamics.
RNE Price at posting:
0.0¢ Sentiment: None Disclosure: Held
