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K-Coal commits to equity participation in Coldry demo plant
Environmental Clean Technologies Limited (ASX: ESI) (ECT or Company) is pleased to announce the signing of a Letter of Intent (LOI) with K-Coal Co., Ltd of Korea (K-Coal) in respect of equity participation in ECT’s Coldry Commercial Demonstration Plant (CDP).
Key Points
• K-Coal signs Letter of Intent (LOI) to provide 5% equity in CDP
• LOI obliges equity participation in subsequent Commercial Scale Plant (CSP) subject to certain conditions
K-Coal, ECT’s agent for the Asian market, has agreed to take a 5% equity position in the CDP and has signed a conditional Letter of Intent (LOI) in regard to this equity investment. The LOI will become binding upon the securing of a defined level of success in regard to the governments Advanced Lignite Demonstration Program (ALDP) funding for the CDP project. The LOI obliges K-Coal to contribute 5% of the equity required for the subsequent 2 million tonnes per annum (mtpa) Commercial Scale Plant (CSP) on proving of the feasibility of Coldry production at commercial scale through the successful operation of the CDP.
ECT Executive Chairman Mike Davies commented “this is a very significant development which we have been working on for some months and it augers well for other equity participation in the CDP. Whilst K-Coal’s equity interest is relatively modest, we believe it will have significant influence on other Asian resources companies, including several Korean companies, whom we are in negotiations with, regarding equity participation in the CDP. We hope to announce the outcomes of these negotiations during the first quarter, after we re-engage with these parties once the status of ALDP shortlisting has been announced by government in mid December”.
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