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  • China Keli Electric Company Ltd.’s (ZKL.H) soon-to-be asset signs with PT Trinitan Green Energy Metals to commercialize the STAL Technology for processing nickel
  • PT Hydrotech Metal Indonesia (HMI) holds the license for the proprietary technology
  • The transaction is defined as a revenue agreement, which can result in issuing up to 50 million common share purchase warrants
  • , HMI has granted a non-exclusive right to use the STAL Technology to Green Energy
  • Green Energy will build the nickel smelters at its own cost and pay HMI a commitment fee
  • China Keli Electric Company Ltd. (ZKL.H) is unchanged trading at $0.36 per share as of 11:46 a.m. ET

China Keli Electric Company Ltd’s (ZKL.H) asset, PT Hydrotech Metal Indonesia (HMI), has signed an agreement with PT Trinitan Green Energy Metals.

The agreement is to commercialize the STAL Technology for processing nickel.

Green Energy and PT Trinitan Resourcetama Indonesia own all the issued and outstanding shares of HMI. China Keli will acquire all the issued and outstanding shares of HMI from the vendors sometime next month.

The transaction is defined as a revenue agreement, which can result in issuing up to 50 million common share purchase warrants to the vendors after completion of the transaction.

Each performance warrant is exercisable for one resulting issuer share at $0.001 per share. Certain exercise conditions must be satisfied for the performance warrants to be exercisable in whole or in part, including proof of funding and commencement of construction of up to 4 nickel smelters by Green Energy.

HMI has granted a non-exclusive right to use the STAL Technology to Green Energy. Green Energy will build the nickel smelters at its own cost and will pay HMI a commitment fee of US$100,000 per smelter, and a STAL Technology utilization fee equal to five per cent of the smelter revenue.

The Green Energy license agreement may be terminated on a month’s notice by either party after HMI has received US$400,000 in commitment fees.

Also, up to 31.2 million of the resulting issuer shares can be surrendered back for cancellation if the nickel smelters do not complete construction by the third or fifth anniversary of the date of the agreement, or otherwise fails to commence production at or above a minimum agreed output.

China Keli currently does not have an active business and is listed on the NEX Board of the TSX Venture Exchange.

China Keli Electric Company Ltd. (ZKL.H) is unchanged trading at $0.36 per share as of 11:46 a.m. ET.

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