VICTORIAN AREAS GIPPSLAND AREAS:
As announced on the 9th September Greenpower Energy Limited (ASX:GPP) has sold its
Mirboo tenement (EL4877) in Gippsland Victoria for $2.8 million. The tenement covers
approximately 700 km2 and is one of the tenements 100% owned by Greenpower in
Victoria. The vendor is Sawells Pty Ltd, a wholly owned subsidiary of Greenpower Energy.
The purchaser is Latrobe Fuels Pty Ltd based in Western Australia and is an unlisted public
company. Payment is staged with an immediate non refundable $200,000 deposit (which
has been received). A further $1.6 million is to be paid 12 months after the Victorian
Department of Primary Industries approves a work plan for the site. A further $1 million will
be contingent on a mining lease being granted for the site. Greenpower will also receive a
royalty of 2.5 per cent on profits of production of all minerals and oil and gas produced from
the tenement.
The Company has entered into a Heads of Agreement (HOA) with Clean Global Energy
Pty Ltd (CGE), a company which has been acquired by International Resource Holdings
Limited (IRH), to allow CGE to explore and evaluate all of Greenpowers Victorian
tenements except EL. 4877 and EL4860 The HOA allows CGE to select (as they decide) a
priority area or areas suitable for UCG development, then if appropriate, in joint venture with
Greenpower, to select a site or sites within selected joint venture area/s to build a UCG pilot
plant/s and in due course a UCG commercial plant/s.
Upon completion of the initial site analysis and characterisation, CGE and Greenpower
intend to enter into a joint venture agreement whereby CGE will commit to expend
$1,250,000 within a 5 year period to earn a 75% interest in the selected coal tenements for
UCG. This expenditure will go towards any initial works in preparation for the construction
and commissioning of a 1Pj per annum UCG Syngas Plant.
Following the initial preparation work, CGE intend to fund and work towards the design,
engineering, construction and commissioning of a 1Pj UCG pilot plant. Upon successful
commissioning of the pilot plant CGE will undertake a feasibility study for the construction of
a commercial UCG Syngas Plant in the range of 5 50Pj per annum.
Greenpower will be offered the opportunity to jointly fund the commercial plant on the same
percentage ownership of the joint venture. In the event Greenpower do not wish to
participate in funding the commercial plant CGE may increase its interest in the joint venture
to 85%.
www.greenpowerenergylimited.com.au
GPP sees this relationship with CGE as a positive step to understand UCG opportunities on
yet to be selected portions of its vast Victorian holdings.
Owing to the extensive areas that CGE has to work on - GPP understands that areas not
prioritised by CGE will not determine that unselected CGE areas are unworthy for coal and
coal gas until adequately tested.
GPP is continuing a review of existing information over all of the areas held as to their for
coal bed methane (CBM) or underground coal gasification (UCG
VICTORIAN AREAS GIPPSLAND AREAS:As announced on the 9th...
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