EnviroMission agrees JV for Middle East solar tower development

Australian solar technology firm EnviroMission Ltd (ASX:EVM) said on Monday it will form a joint venture that will commercialise its solar tower technology in the Middle East and North Africa (MENA).

Heads of agreements have been signed with is Q Analytica LLC (QA), which will get exclusive licence for solar tower development rights in the region in return for an initial development fee of USD 3 million (EUR 2.6m). EnviroMission will receive a capital injection of USD 1.5 million through the placement of shares with QA. The Australian company will also get a free, carried, 21% stake, not to be diluted below 15%, in each solar tower development joint venture with QA, as well as an annual royalty and technology fee.

EnviroMission said the deal would provide it with active involvement in solar tower development in the MENA region. Once it has been finalised, the company will issue 10 million options for shares to QA at a strike price of AUD 0.30 per share with an expiry date of September 15, 2016.

(USD 1.0 = EUR 0.879)

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