Carnegie Wave Energy completes $3.5 million Share Placement

www.proactiveinvestors.com.au
December 04, 2009

Carnegie Corporation Energy (ASX: CWE) is forging ahead with plans in the development of the Company's first full scale CETO Wave Energy unit in the waters off Garden Island in Western Australia after wrapping up a $3.5 million share placement. The placement, at an issue price of 12.5 cents per share, is part of a larger fundraising initiative which will see the Company also implement a Share Purchase Plan to raise up to a further $2.5 million.

The Placement received strong interest from potential participants with firm commitments having now been received for the entire amount. The new issue has been placed almost exclusively to a select group of European, American and Australian institutions with a small balance taken by sophisticated investors pursuant to Section 708 of the Corporations Act.

Funds raised from the Placement and the SPP will be applied towards deployment and commercial scale test work of the Company's first full scale CETO Wave Energy unit in the waters off Garden Island, Western Australia, as well as international site development activities and for general working capital requirements.

Carnegie Corporation Managing Director Michael Ottaviano, said the company took the decision to complete this placement prior to Christmas after having received interest from European institutions. "We will also complete a Share Purchase Plan before Christmas to extend the benefit of the capital raise pricing to our existing shareholder base," Dr Ottaviano said.

The CETO system distinguishes itself from other wave energy devices by operating out of sight and being anchored to the ocean floor. An array of submerged buoys is tethered to seabed pump units. The buoys move in harmony with the motion of the passing waves, driving the pumps which in turn pressurise water that is delivered ashore via a pipeline.

High-pressure water is used to drive hydroelectric turbines, generating zero-emission electricity. The high-pressure water can also be used to supply a reverse-osmosis desalination plant, replacing greenhouse gas emitting electrically driven pumps usually required for such plants.