West Perth-based Carnegie Corporation Ltd aims to raise $10 million through a share purchase plan and private placement to fund development of its CETO wave power technology.
West Perth-based Carnegie Corporation Ltd aims to raise $10 million through a share purchase plan and private placement to fund development of its CETO wave power technology.
The full text of a company announcement is pasted below
Carnegie Corporation Limited (ASX: CNM) is pleased to announce the implementation of a major funding package aimed at raising $10 million to assist in the fast tracking of the development of the CETO wave power technology, ahead of the proposed commercial demonstration project.
Following strong support from the investment community over recent months, the Company has chosen to immediately undertake a Share Purchase Plan underwritten to $3 million and a $7 million Private Placement.
Carnegie has mandated Perth based stock broking firm Stripe Capital Pty Ltd ("Stripe") to assist the Company with the Private Placement. In addition, Stripe has agreed to underwrite $3 million of the Share Purchase Plan.
The share issues will be carried out as follows:
- A Share Purchase Plan ("SPP") to existing shareholders at an issue price of 10 cents underwritten to $3 million (maximum of $5000 per shareholder); and
- An Issue of 70,000,000 shares at 10 cents each to financial institutions, ethical funds and 'high net worth' individuals ("Placement") to raise $7 million, with capacity to accept a further $3 million in oversubscritptions.
The shares the subject of the Placement and the underwritten portion of the SPP are subject to shareholder approval at a general meeting of shareholders currently scheduled for 1 November 2007. Meeting materials, including an activity update, will be forwarded to shareholders within the next fortnight.
The Company's Managing Director Dr Michael Ottaviano said: "We continue to receive very strong interest from the investment community and believe this is a clear endorsement of the quality of the CETO project and of Carnegie's growth potential.
While the Placement will introduce new investors to Carnegie, the SPP will also give current shareholders an opportunity to participate in the growth of the Company."
Full details of the SPP and Placement are provided to shareholders in a separate announcement released today.
Use of Funds
The funds raised will be used primarily for the development of the CETO wave energy technology. It is estimated that CETO will require around $6-8 million over 12-18 months to take it through to commercial-ready status. It is expected that a commercialscale demonstration project will then follow. The balance of the funds will be used to continue the development of Carnegie's 100% owned Cleaner Coal Power technology and for working capital purposes.
Wave Energy & CETO:
Named after the Greek ocean goddess, the CETO technology distinguishes itself from other wave energy devices by resting out of sight on the ocean floor. An array of submerged buoys is tethered to seabed pump units. The buoys move in harmony with the motion of the passing waves, driving the pumps which in turn pressurises seawater and deliver it ashore via a pipeline. The high-pressure seawater can then be used to supply a reverse osmosis desalination plant, replacing greenhouse gas emitting pumps usually required for such plants. The high-pressure seawater can also be used to drive hydro turbines, generating zero-emission electricity.
Other wave energy & CETO characteristics include:
- Wave energy is a renewable, zero-emission source of power.
- 60% of the world lives within 60km of a coast, removing transmission issues.
- As water is about 800 times denser than air, the energy density of waves exceeds that of wind many times over dramatically increasing the amount of energy available for harvesting.
- Waves are predictable days in advance making it easy to match supply and demand. (Wind is predictable hours in advance at best.)
- CETO sits underwater, moored to the sea floor, meaning there is no aesthetic impact.
- CETO units operate in deep water, away from breaking waves. The waves regenerate once they pass the CETO units, meaning there is no impact on popular surfing sites.
- CETO units are designed to operate in harmony with the waves rather than attempting to resist them. This means there is no need for massive steel and concrete structures to be built
- CETO is the only wave energy technology that produces fresh water directly from seawater by magnifying the pressure variations in ocean waves.
- Any combination of power and water can be achieved from 100% power through to 100% water.
- CETO contains no oils, lubricants, or offshore electrical components. CETO is built from components with a known subsea life of over 30 years.
- CETO units act like artificial reefs in the way they attract marine life.
