STONEHENGE METALS LIMITED ASX Code: SHE
Addendum to existing MOU with Cal Poly for co-operation on deployment of an ocean wave energy and desalinated water micro-grid project at Cal Poly Research Pier (Pier)
The Cal Poly Research Pier is a state of the art centre for coastal marine sciences with research facilities, offices, lifting equipment and a warehouse for storing and testing oceanographic instrumentation
This will be the first wave energy demonstration project for the Protean WEC technology in the US with deployment expected to commence during 2016
Stonehenge Metals Limited (to be renamed Protean Wave Energy Limited) (Stonehenge, or the Company) is pleased to advise that it has executed an addendum to the existing MOU with Cal Poly, a leading Californian Polytechnic University in San Luis Obispo (Cal Poly). The Company has agreed to co-operate and partner with Cal Poly to plan and execute the deployment of a staged ocean wave energy and energy storage micro-grid project at Cal Poly Research Pier (Pier) (the Project). As a result of the addendum to the MOU with Cal Poly, the Company will issue a Supplementary Prospectus in conjunction with this announcement.
The Cal Poly Pier is located at Avila Beach and is 3,000ft (~1km) long and operates as a leading marine research facility providing students, faculty and researchers with unrivalled access to the marine environment.
The Project is expected to be a staged deployment program, which is to commence during 2016, with the temporary deployment of the first Protean wave energy converter (WEC) in the ocean. This first buoy deployment is the initial stage of the program to test seaworthiness and assess the environmental impact of the WEC off the coast of California.
This agreement to deploy a wave energy project in the US is in addition to the Company's planned 30-buoy demonstration wave farm off the coast of Bunbury, Western Australia and the planned commercial pilot wave farm in the Maldives, at Hanimaadhoo Island.
The initial phase of the Project is expected to be funded by Stonehenge within the existing budgeted use of funds as set out in the Prospectus dated 25 November 2015. The parties will co-operate to seek additional sources of funds in the form of grants or direct funding by Stonehenge for later stages, as they are defined, in addition to potential cost sharing by Cal Poly.
The new additional agreement represents another step towards deployment of the first Protean WEC in the US, which is in addition to the Company's plans to deploy projects in Australia and the Maldives. The Company believes that each of these projects demonstrates the Company's ability to form partnerships across the globe with each project moving the Company further down the path to commercialisation.
As a result of the addendum to the MOU with Cal Poly, the Company will issue a Supplementary Prospectus in conjunction with this announcement. The purpose of the Supplementary Prospectus is to supplement the information provided in Sections 3.3 and 11.20 of the Prospectus lodged on 25 November 2015 by incorporating the information contained in this announcement.
The Project is in addition and complementary to the agreement already in place with Cal Poly for a joint application for US$1.5m of funding from the US Department of Energy (DOE) to fund Cal Poly's CalWave project, in which Stonehenge acts as a team member and technology contributor (refer ASX Announcement 30 June 2015).
As announced on 2 November 2015 the CalWave project has been selected to receive a US$1.5 million grant from the DOE subject to negotiation of a final funding agreement. The CalWave project's brief is to assess the feasibility of locating a National Wave Energy Test Facility offshore of California.
For further information see www.stonehengemetals.com.au, www.proteanwaveenergy.com or contact:
T: + 61 8 9481 2276
E: blane@stonehengemetals.com.au
Media Queries: Fran Foo - Media & Capital PartnersT: +61 416 302 719
E: fran.foo@mcpartners.com.au
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