Stonehenge Metals has entered into an agreement to acquire a Protean Energy subsidiary for a cash and share package worth about $1.34 million, to gain access to Protean’s wave energy converter technology.
The Protean system is based upon a point-absorber wave energy converter buoy device, which floats at the water surface and extracts energy from the waves by the extension and contraction of a tether to its anchoring weight on the sea bed.
“The device is unique in that it optimises the conversion of energy from waves through all six degrees of wave movement or motion,” Stonehenge said in a statement.
If the agreement goes ahead, Stonehenge would acquire all rights, title and interests including all licences relating to the WEC technology.
Under the terms of the transaction, Stonehenge is required to raise at least $1.2 million, which the company said it would conduct in two equal tranches through a rights issue on the basis of seven new shares for every 10 existing shares held, at an issue price of 0.5 cents per share.
“The Protean wave energy conversion system is a unique and practical renewable energy technology with significant global potential,” Stonehenge chairman Richard Henning said.
“(The acquisition) is a pre-commercialisation opportunity that we can pursue whilst we continue with efforts to develop our Korean energy projects in partnership with KORID and others that will offer synergies as we build a vertically integrated energy company.”
The company said it was continuing with its plans to negotiate a binding joint venture agreement with Korea Resources Investment and Development to gain access to 36,000 metres of drill core from the Daejon project tenements.
Stonehenge’s share price fell by 22.2 per cent to 0.7 cents per share at 12:30pm.
