News: Stonehenge Metals to acquire wave energy technology

Stonehenge Metals (ASX:SHE) has signed a binding option agreement to acquire the Protean Wave Energy Converter (WEC), a wave energy technology that has the potential to produce scalable cost effective energy.

The company plans to assess the potential of the Protean WEC to create a step change improvement in renewable energy production.

It will do so by:

- Refining the proven scale WEC device to rapidly deliver a pre-commercial pilot model;
- Deploying an array of Protean WEC devices to provide scalable power to a prospective customer;
- Testing the Protean array & transmission setup in preparation for commercial trials;
- Verifying and reporting the testing results through independent technical experts; and
- Commercialising the power generation array initially for small to medium customers.

Stonehenge has a 24 month option to acquire the technology with a $500,000 minimum spend over 18 months.

It will pay a consideration of 60 million shares at settlement and a further 60 million shares at option exercise as well as 120 million performance shares at option exercise.

The company will be required to raise at least $1.2 million via a 7 for 10 rights issue priced at $0.005 per share.

Protean WEC Technology Summary

The Protean system is based upon a point-absorber wave energy converter buoy device which floats at the water surface and extracts energy from the waves by the extension and retraction of a tether to its anchoring weight on the sea bed.

The device is unique in that it optimises the conversion of energy from waves through all six degrees of wave movement or motion.

It has been trialled at a 1.5 metre wide scale in the sea off Perth, Western Australia, which proved the system can successfully convert the power from waves into usable energy.

Notably, it uses compact architecture to produce power very efficiently from a small, low cost design.

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