The countdown to the 19th began on Tuesday that will finally see...

The countdown to the 19th began on Tuesday that will finally see ECT become more then hopes and dreams. It has been a long journey for a comapny with 2 game breaking techs in the coal and steel industries and many have believed that these techs would 1 day move forward to commercialisation in turn reaping rewards for shareholders. It has been a tough journey with many thinking the ALDP and LV was where ECT would make its mark and develop ground breaking techs that could see LV developed and Coldry proven. This was not to be with a government that slapped ECT in the face and handed a grant win to a mutli billion $ Chinese company who did not need a grant to develop their inferior tech. In turn that Chinese company has slapped the Aus govt back in the face and are no longer interested in the LV story and the whole ALDP program has seen no development or $$ handed over as yet. In turn ECT battled on and moved their and our hopes to India in a country that is headed for a massive development phase and is crying out for techs of the nature ECT has. Management pushed forward after the ALDP debacle and set about raising this little ASX spec from the ashes with big plans in India which would see not 1 but 2 multi billion $ govt owned companies set about moving forward on plans to commercialise not just Coldry but Matmor quicker then many had hoped.

The 19th will see a ceremony take place in India with ECT, NLC , NMDC and Aus govt delegates which will be the new beginning of ECT as a major talking point both in India and Aus as the 3 companies sign a Tripartite agreement which will set about a path towards construction. On everyone's lips is the funding arrangements that will take this project forward. I believe according to the AGM this is a key measure that will be worked on after the agreement is signed with numerous options including the Indians taking an equity position in ECT as 1. I believe as announced ECT's application for an advanced finding from AusIndustry is the key to financing this project. The 30 mill debt facility that ECT are working on which would see them able to draw on this and be reimbursed via the AusIndustry R&D refunds would be the best possible scenario and most undilutive for holders. Within the Tripartite agreement i will be hoping to see wording that will show all parties ECT, NLC and NMDC will be contributing an equal share to the project with more details to be released when ECT get an answer on the AusIndustry advanced finding and a clear path is set for which funding model is the best for moving this project forward for both ECT and holders. I believe if ECT receive clearance for R&D rebates on the project then this would be a big win for holders that will see minimal dilution. This may see NLC and NMDC be able to take an equity position in ECT and ECT take ownership of the whole plant and be reimbursed through R&D on the whole project. In turn NLC and NMDC will have an equity position in ECT and down the track ECT may sell the plant to these parties as mentioned at the AGM. The agreement according to the AGM report will also set out site engineering as well as detailed project costing which will then trigger the finance part of the agreement when a full detailed costing will give a real figure of construction of the project.

Many have wondered about the continued selling and stated a fear that the likes of Menzies is selling as they know of something coming or why would they be selling. I have my theories and if you look back to October 31st 2014 a fast finance was drawn up which is well overdue. I would think that Platinum road (Menzies) would be selling to pay clients who may have taken a position in that fast finance and are overdue payment. According to that announcement the fast finance is convertible to stock at 2c so i believe we may see that 1.2 mill $ converted to shares which is why we have seen the selling to in turn pay that debt. I have been involved in like fast finance deals which see clients take the fast finance issue and they would now need to be paid back. Platimum road would sell their stock to reimburse these clients and in turn convert the stock. While some may jump up and down about this the fact is ECT owe Platinum Road 1.2 mill $$ and they will need to pay them back in cash or shares at 2c. I believe paying them in shares is the best way right now. What must be also remembered is that when this fast finance was drawn up and Platinum Road agreed to take shares converted at 2c ESI was sitting at .008 so fare is fare if my theory is correct.

The countdown is on and management have done a brilliant job after the ALD failure and debacle. The past has been rough for this company and many holders who have done the journey. I have been in and out of this company along alot of that journey but believe the current board deserve a big tick for setting up ECT in India and create a perfect storm in a market that need ECT as much as we need them. The spec space is not an easy 1 and the pathway to commercialisation is not easy but ECT is finally moving down the path that many believed they could. I believe we should get massive media attention as the 1st company to do a such deal with 2 massive Indian govt companies both in India and Aus. ECT may well be a market darling in 2016 and i believe as developments move forward a push towards the ASX 300 is well within reach. Good luck all and bring on the 19th.