Wasabi completes formation of Asian coal joint venture

AIM-listed international power producer Wasabi Energy, has completed the formation of Wasabi New Energy Asia (WNEA) and agreed initial funding for WNEA with Augut Clean Energy Pty Limited (Augut) .

AIM-listed international power producer Wasabi Energy, has completed the formation of Wasabi New Energy Asia (WNEA) and agreed initial funding for WNEA with Augut Clean Energy Pty Limited (Augut) .

Wasabi said that it and Augut had entered into a binding heads of agreement to establish a joint venture company to provide technical and financial resources for the continuing design and development of the Kalina Cycle for the coal industry.

The joint venture is to focus on coal-fired power stations and the potential for deployment of the Kalina Cycle using the methane available at coal mines. Wasabi said that Augut had agreed to fund the shortfall in cashflow of the joint venture Company for the initial 18 months.

Wasabi said it would grant the joint venture company a global exclusive Kalina Cycle licence for the coal industry, subject to existing licence agreements which, amongst others, excluded the ASEAN and China region that was covered by the WNEA and SSNE licenses.

Separately, Wasabi said that Augut had subscribed for 150m shares in Wasabi at one cent each to raise A$1.5m along with an accompanying option exercisable at one cents until June 30th 2014. The funds raised by Wasabi under the placement would be used as additional working capital of the group. The new subscription shares are expected to be admitted to trading on AIM on Tuesday June 11th.

Wasabi's share price was up 5.0% to 0.52p at 10:50 on Friday.

MF

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