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JATCORP LIMITED — Capital/Financing Update 2013
Sep 23, 2013
65154_rns_2013-09-23_7c1aaa31-50ee-46a6-94e8-b9908a900254.pdf
Capital/Financing Update
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JATENERGY LIMITED ABN 31 122 826 242
ASX CODE: JAT
AUSTRALIAN REGISTERED OFFICE Floor 6, Suite 8 55 Miller Street PYRMONT NSW 2009 AUSTRALIA
CONTACT DETAILS Telephone +61 2 9571 8300 Facsimile +61 2 9571 8200 Email [email protected] Web www.jatenergy.com
ASX ANNOUNCEMENT
24 September 2013
LICENSING AGREEMENT SIGNED AND COAL PLUS TESTING TO COMMENCE IN MONGOLIA
HIGHLIGHTS
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Licensing agreement signed with Monrospromugoli LCC for Mongolian Coal Plus projects.
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Testing of Mongolian Coal for Coal Plus conversion to commence immediately
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Mongolian project providing cleaner energy to reduce pollution in Northern China.
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The board of Jatenergy Limited is pleased to announce the finalisation of the licensing and coal plus testing agreement required to confirm the suitability of Jatenergy Coal Plus technology in Mongolia. Jatenergy entered into an agreement with Monrospromugoli LCC (MCo), whereby a testing stage and feasibility study would be undertaken to confirm the results of the simulated commercial process analysis conducted by Jatenergy.
Testing Agreement
Under the agreement between MCo and Jatenergy, a study will be conducted to confirm the feasibility of Mongolian Coal for Coal Plus conversion. There are five stages, which must be completed to build a business case for the establishment of these sites:
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Coal testing for a feasibility analysis
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Identify a suitable sized reserve
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Business case for the venture including its costs, risks, returns and project road map.
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Develop a capital investment program and;
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Establish a Coal Plus royalty agreement with Jatenergy for the initial and ongoing use of the technology.
Upon the receiving the coal samples, Jatenergy will conduct analysis and provide MCo with analytical reports and an audit of testing services. The tests will replicate an actual Coal Plus process and the resulting gas, oil and residual coal will be analysed on a quantitative and qualitative basis to determine the volume of outputs which are being produced. This information will form the basis of the feasibility study and Jatenergy is highly confident that it will produce a positive outcome. This can be contributed to the highly encouraging results on the basis that the coal conversion technology has already been applied to Inner Mongolian Coal on other projects.
This is a significant milestone for the development of Jatenergy’s energy conversion technology projects. Executive Chairman Tony Crimmins stated “The company is very pleased with the recent developments of the Mongolian Coal Plus project. With strong cash flow coming in from Jatenergy’s currently producing assets, the company is now seeking to develop its energy conversion technology projects. We believe that the Mongolian projects will prove to be feasible and the board of Jatenergy looks forward to assisting the Mongolians in finding a solution to their energy requirement and address their current pollution issue”.
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Figures 1 & 2 – Existing Coal Plus Coal Plus Plant – Shaanxi, China
Background
Around Ulaanbaatar, Mongolia there is an abundance of low‐rank, high‐volatile bituminous coal, which is currently being ineffectively burnt by coal‐fired heating companies. This pollution, coupled with other coal power stations in inner Mongolia have left a dangerous haze, which regular covers central and northern Chinese cities including Beijing and Harbin. In response to this issue, the Mongolia private and government have been seeking coal upgrading technology to make better use of their resources.
The Technology
The Coal Plus technology is a proprietary coal upgrading technology which coverts low value brown coal into high value energy products. Unlike existing coal upgrade technologies, which are mostly at pilot plant stage, Coal Plus Technology is proven and there are currently four commercial plants operating in Asia with the fifth plant being commissioned in Pingdinshan, China at the end of September 2013. Jatenergy currently has the license for the technology in Asia with the option to expand this license.
The diagram below show the products that can be derived from Coal Plus Technology in relation to air pollution concerns in Mongolia
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Figure 3 Feasible products from Coal Plus Technology
About Jatenergy
Jatenergy (ASX:JAT) is an ASX listed energy investment company, focused on conventional, second generation and energy conversion technologies. Jatenergy acquires projects, creates value through development and then sells or Joint ventures the projects to provide a return for investors.
Media and Management Contact
Tony Crimmins +61 2 9571 8300 [email protected]
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About Jatenergy Jatenergy Limited is a Sydney‐based diversified energy company operating in both Australia and Asia. Jatenergy’s strategic focus is on producing cash returns from its coal and jatropha assets as well as implementing the proprietary Coal Plus technology for upgrading low grade coal into high value energy products.
Directors Tony Crimmins Executive Chairman Richard Pritchard Non‐Executive Director
Mr Xipeng Li Non‐Executive Director Mr Wilton Yao Alternate Director
Jatenergy Limited ABN 31 122 826 242 ASX code JAT Ordinary fully paid shares 98,565,568 Listed options 31,898,547