According to ECT...Given the current state of the financial and...

According to ECT...


Given the current state of the financial and capital markets, your Board is very strongly of the view that financing of the CDP by traditional project financing sources will be difficult if not impossible.

The offer by Monash to assist with project financing for the Coldry Demonstration Plant reduces the financial risk for other investors, and the Board is of the view that, without the provision of substantial project financing from Monash, it would be very difficult to secure interest from resources companies in the project.

Yesterday we announced our success in securing a 5% equity interest in the CDP from K-Coal of Korea and we are in negotiations to secure further equity investment from other resource companies, including several large Korean conglomerates. Whilst K-Coal’s equity interest is modest, we believe it will have significant influence on the other Korean companies to also invest in the CDP project.

K-Coal has committed to the CDP, in large part, because of the expectation that Monash will provide substantial project finance and, in doing so, mitigate the risk for other investors.

During my numerous discussions with Korean and Japanese resource companies in their offices in Seoul and Tokyo, it is made very clear to me that their interest in the project is contingent on a de-risking brought about by substantial financial participation by other parties, and this includes the provision of substantial project financing.

It is for these reasons that we have continued to work with Monash for the delivery of the share placement monies and, very importantly, the subsequent delivery of substantial project financing for the Coldry Commercial Demonstration Plant and other ECT projects.