Clean Coal Technologies Inc (OTCMKTS:CCTC) reported that they have finalized a binding term sheet so as to license Pristine “M” Technology to the firm, Diamond Energy Group, LLC. It is a newly established syndicate of coal technology and engineering experts. As per the deal, the group has a six month period option to license their technology for a planned site in Wyoming.
The terms of the deal include Clean Coal obtaining a license fee of $1 million per 1 million tons of capacity and $1.50 per ton as royalty. This option can be exercised after six months of the commercialization of company’s Pristine “M” technology.
Under the deal, Diamond Energy will get an exclusive license to advance and deploy the technology throughout Montana and Wyoming in a joint venture with Clean Coal whereby royalties and license fees are split 50%-50%. In addition to the royalties and license fees and in return for the option Diamond Energy will do three payments to company under an additional structured note.
The financial details
The financial terms includes amount of $250,000 should be paid on or before September 15, $250,000 on or before October 15, and amount of $800,000 on/before November 15. These funds will be used for retiring the convertible notes and for cleaning up company’s balance sheet.
Robin Eves, the CEO and President of Clean Coal Technologies Inc (OTCMKTS:CCTC), said that they are getting a substantial amount of interest and have finalized two additional NDA’s with groups looking to benefit from the successful commissioning of company’s technology. Finalizing this term sheet with Diamond Energy that has large exposure to the political systems and coal industry will help to boost the roll out in the region.
The company has attracted investments and interest from across the world and they are thrilled to have finally finalized a domestic deal complementing assessment of technology at AES.