Gets Participation from K-Coal in the Coldry Commercial Demonstration Plant
Sydney, Nov 28, 2012 AEST (ABN Newswire) - Environmental Clean Technologies Limited (
ASX:ESI) gets a Letter of Intent with K-Coal Co., Ltd of Korea in respect of equity participation in ECT's Coldry Commercial Demonstration Plant.
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 KCoal 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".
About Environmental Clean Technologies Ltd
Environmental Clean Technologies Limited (ASX:ECT) is in the business of commercialising leading-edge coal and iron making technologies, which are capable of delivering financial and environmental benefits.
We are focused on advancing a portfolio of technologies, which have significant market potential globally.
ECT's business plan is to pragmatically commercialise these technologies and secure sustainable, profitable income streams through licencing and other commercial mechanisms.
