Stonehenge to acquire wave energy technology

THE BOURSE WHISPERER: Stonehenge Metals (ASX: SHE) has entered into a binding option agreement with Protean Energy Limited (PEL) to acquire 100 per cent of that company’s wholly-owned subsidiary, Protean Energy Australia (PEA).

PEA holds the intellectual property titles, rights and licenses to the Protean Wave Energy Converter Technology.

According to Stonehenge the Protean system is based upon a point-absorber wave energy converter buoy device which floats at the water surface and extracts energy from the waves by the extension and retraction of a tether to its anchoring weight on the sea bed.

The company said the unique aspect of the device is that it optimises the conversion of energy from waves through all six degrees of wave movement or motion.

Stonehenge compared this to other wave energy systems, which it said typically uses one or two degrees of movement.

“The opportunity to acquire Protean is an exciting step forward for Stonehenge and diversifies the company within the energy sector,” Stonehenge Metals chairman Richard Henning said in the company’s announcement to the Australian Securities Exchange.

“It is a pre-commercialisation opportunity that we can pursue whilst we continue with efforts to develop our Korean energy projects in partnership with KORID and others that will offer synergies as we build a vertically integrated energy company.

“The Protean wave energy conversion system is a unique and practical renewable energy technology with significant global potential.

“We are excited by the prospect of rapidly commercialising the Protean technology at a time when the world is seeking a viable renewable energy source to rival solar and wind.”

Although the Protean acquisition is a departure from its Korean uranium projects, the company said it is continuing with its plan to negotiate a binding JV agreement with Korea Resources Investment & Development (KORID) and to direct efforts in Korea towards a collaboration agreement with Korea Institute of Geoscience and Mineral Resources (KIGAM) to gain access to 36,000 metres of historical drill core from the Daejon project tenements.

Stonehenge said it still aims to upgrade the size and confidence of its existing vanadium and uranium resources, through non-destructive testing of the existing core, without the expense of further drilling.