MIDDLE EAST SOLAR TOWER DEVELOPMENT DEAL UNDERWAY
EnviroMission Limited (ASX: EVM, OTCQX: EVOMY) has signed a landmark Memorandum of Understanding (MOU) on 1 December,2013 with a Middle East base development entity with the capacity to own, build and operate mu ltiple Solar Tower power stations in that region.
The MOU proposes the commercialisation of Solar Tower power stations in the Middle East through the acquisition of exclusive regional development rights, and informs a Heads of Agreement to that effect, to be executed on or before 1 March, 2014.
A condition precedent of the Heads of Agreement is the placement of an initial US$1,500,000 investment in EnviroMission AUD$0.10c per ordinary security with an attaching AUD$0.20 option (expiration date of 15 September, 2016) on or before 1 March, 2014.
EnviroMission will also receive a one-off fee, an annual technology fee per Solar Tower power station, and equity and board representation on a special purpose Solar Tower development vehicle to be formed and capitalised by the developer under the Heads of Agreement.
EnviroMission has previously announced it has moved towards a business model that utilises regional or market partnerships for equity, capital injection, one-off payments, and ongoing royalty fee arrangements to EnviroMission in consideration for the granting of Solar Tower development rights into selected markets with companies equipped to deliver Solar Tower development in those markets – this MOU reflects this strategic intent.
“This partnership has the potential to redefine the common perception of renewable energy and the way it is delivered – it is the intent to provide base load, predictable, non- intermittent clean power in a first for the Middle East,” “The MOU also represents a significant move towards the global market development of EnviroMission’s Solar Tower technology to further the commercial reach and potential for EnviroMission’s shareholders,” Roger Davey, EnviroMission Chief Executive said.
Further details will be released to the market on execution of the Heads of Agreement.
