Shares in Perth-based junior Neptune Marine have soared more than 35 per cent in the past two days as it continues to secure contracts for its ground-breaking underwater welding technology.
The shares jumped 19.5¢ to $1.26 yesterday on the latest deal - an exclusive three-year agreement for the use of its welding technology in 11 countries throughout Asia.
Earlier this week Neptune said it had completed its second military repair contract for the Australian Navy, generating more than $250,000 in revenue over 19 days.
Neptune has been a market darling this year with its shares rocketing from 50¢ in January to a peak of $1.50 in March before the recent market downturn knocked the stock back to 69¢.
The latest agreement will see the Malaysian-based IEV Group use the Neptune technology in Malaysia, Singapore, Indonesia, China, Japan, South Korea, India, Vietnam, Myanmar, Thailand and Brunei.
IEV is a specialist technology and engineering company in the marine, oil and gas and shipping industries in Asia. It owns several patented marine growth control technologies along with the licensed rights to several other technologies used in the field.
Neptune said the deal represented a significant new milestone in the commercialisation of its dry underwater welding system. It was the first international arrangement entered into by the company and provided a significant potential revenue base in the region.
The company said it would provide technology, weld engineering and support, and IEV would provide the market and operational support to win and execute projects.
"Revenue will be generated through a usage charge for the technology along with additional fees for the provision of personnel and other services," Neptune said.
Operational training and certification would start immediately, along with marketing the technology to key customers, and IEV was expected to be project ready in the June quarter.
Neptune said it also had interest from Australian military contractors and overseas militaries.
NMS Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
