Environmental Clean Technologies Limited (ECT or Company) (ASX:ESI) advises that the Strategic Deliverable Bond (SDB), established to fund the delivery of Coldry engineering outcomes, has today been extinguished through the receipt of a final conversion notice for the balance of the Bond.
The Appendix 3B released via ASX today (link) represents the conclusion of a funding program which has enabled the highest value outcomes delivered by the Company since its inception; detailed engineering and design for the Coldry commercial-scale demonstration plant.
The Bond in total provided $3.9 million in funding, at an average conversion price of 0.54 cents per share.
The detailed engineering program began in late 2011, initially funded by shareholders through a Rights Issue. The Arup Strategic Deliverable Bond was set in place in November 2012 to support the delivery of the ‘Design for Tender’ (DFT) program, necessary to scale up the Coldry process from pilot-scale to a commercial-scale demonstration plant.
The early stage works included process data mapping of the Pilot Plant and validation activities enabling the scale up design works to begin.
The second phase included equipment performance specification development, options analysis for equipment configurations, and a range of cost saving and performance improvement engineering works.
The DFT works were then focussed to provide for a specific outcome of a Commercial-scale Demonstration Plant (CDP) project, and expanded to include various pre-construction and construction planning activities, as well as construct-ability analyses.
The ‘Construction Ready’ design package was presented to shareholders in August 2013.
This level of preparedness enabled the Company to pursue its India strategy, initially entailing the engagement of Greenard Willing India and YES Bank to support delivery against the Manufacturing Strategy elements. This included the detailed review of capable Indian EPC companies, and culminated in the appointment of Thermax as ECT’s Indian EPC partner.
The progressive delivery against this strategy, enabled by the work funded by the SDB, sees the Company now positioned to significantly advance in India and globally.
Managing Director Ashley Moore stated, “The works embodied by the DFT and construction ready engineering packages were vitally important in engaging with Thermax. Through that, we have now reduced the projected cost of demonstrating Coldry at commercial scale by more than $30 million”.
While this is the last conversion associated with the Bond the future value potential enabled through the delivery of engineering outcomes produced by it is yet to be fully realised.
For further information contact: Ashley Moore – Managing Director – firstname.lastname@example.org