21/06/2016 - 14:15

ECM partners with Enerji

21/06/2016 - 14:15

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Diversified construction and maintenance group EC&M has emerged as the private company that has entered into a partnership agreement with energy technology company Enerji.

ECM partners with Enerji
Andrew Vlahov was formerly chief executive and owner of the Perth Wildcats.

Diversified construction and maintenance group EC&M has emerged as the private company that has entered into a partnership agreement with energy technology company Enerji.

Under the agreement, ECM, a 2012 Rising Stars winner, will subscribe to a $2 million share placement being undertaken by Enerji at 2.5 cents each, and will provide a $2 million convertible note facility to the company at a conversion price of 3.5 cents each.

The funds raised will be used by Enerji to progress its power purchasing agreement with Northern Star Resources at the Jundee gold mine in the Goldfields.

Enerji has entered into an agreement to supply a 1.5 megawatt heat-to-power plant at Northern Star’s Jundee power station, under an initial five-year deal.

Under the deal announced today, ECM will also build the plant for Enerji.

The plant, which will incorporate Enerji’s Advanced Thermal Energy Node technology, will capture waste heat and convert it into usable power.

“This cornerstone investment by ECM will provide the required financial strength to complete our first project, provide further validity of the ATEN technology, and underpin our future growth as a company,” Enerji chief executive Andrew Vlahov said.

“This partnership will allow Enerji to complete Jundee and accelerate our project pipeline with great confidence.”

ECM chief executive Simon Higgins said the partnership with Enerji was a good fit.

“The diversity strategy of the ECM group has been to invest and participate in opportunities where we can genuinely add value,” Mr Higgins said.

“We feel that this project, combined with the synergies between ECM and Enerji and the healthy pipeline of ATEN projects beyond Jundee, will bring significant opportunities to the ECM group over a long period.”

Upon completion of the placement and issue of convertible notes, Mr Higgins will be appointed as a non-executive director of Enerji.

Meanwhile, Mr Vlahov plans to take on the role of managing director of Enerji following completion of the transaction.

Mr Vlahov was formerly chief executive and owner of the Perth Wildcats.

Earlier this year, ECM was awarded a contract to provide electrical infrastructure replacement services for Rio Tinto's iron ore division, and a heating, ventilation and air-conditioning services contract at several of Alcoa's Western Australian sites.

Enerji shares closed 3.7 per cent higher at 2.8 cents each.

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