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

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Bitcoin: fool’s gold or the new gold?
Bitcoin

Bitcoin: fool’s gold or the new gold?

With bitcoin hitting new highs last week, and close to becoming a mainstream investment, is it really gold for the 21st century?
15 Jan 2021
Forget austerity – governments and central banks have no intention of cutting back
Global Economy

Forget austerity – governments and central banks have no intention of cutting back

Once the pandemic is over will we return to an era of austerity to pay for all the stimulus? Not likely, says John Stepek. The money will continue to …
15 Jan 2021
The MoneyWeek Podcast: bitcoin special
Bitcoin

The MoneyWeek Podcast: bitcoin special

Merryn talks to bitcoin experts Dominic Frisby and Charlie Morris to get the lowdown on the cryptocurrency to find out why it's such a huge global phe…
15 Jan 2021
Free 6 issue trial then continue to