Currie Rose Resources has recently completed the acquisition of WA Hydrogen, also known as Kotai Energy, in a strategic move that positions the company in the rapidly growing hydrogen sector.
The acquisition, which was previously announced on March 23, 2023, and updated on May 15, 2023, involved the issuance of 50 million common shares of Currie Rose to acquire all of the issued and outstanding shares of Kotai Energy, as well as a 5% royalty on future production.
Kotai Energy, in partnership with Curtin University in Western Australia, is focused on developing solid-state bulk exportable hydrogen technologies. Their goal is to create a hydrogen supply chain that is economically and commercially viable, addressing one of the major challenges in the widespread adoption of hydrogen as an alternative energy source. Kotai has developed a hydrogen-rich powder called ‘sodium borohydride,’ which enables the safe and cost-effective global export of hydrogen.
The Hydrogen Project, a collaboration between Kotai Energy and Curtin University, aims to establish technologies for the large-scale export of hydrogen, facilitating its transportation away from the production source. This project received funding from the Australian Research Council and aligns with the growing interest and investments made by governments worldwide in hydrogen research and development. Japan, for instance, recently announced a $107 billion investment in hydrogen supply over the next 15 years as part of its low-carbon economy transition.
Hydrogen is gaining traction as a clean alternative to natural gas and is considered a versatile energy carrier by the International Energy Agency, capable of addressing various energy challenges. The synergy between Kotai’s hydrogen project and Currie Rose’s pursuit of vanadium redox flow battery technology highlights the shared focus on reliable alternative energy sources.
As part of the acquisition, Kotai Energy is now a wholly-owned subsidiary of Currie Rose. The company will maintain its primary focus on the North Queensland Vanadium Project in Australia while holding the option, through Kotai Energy, to acquire 100% of the intellectual property rights associated with the Hydrogen Project from Curtin University. Should Kotai exercise this option within 24 months following the completion of the Hydrogen Project, Curtin University would receive an AUD $1 million cash payment, as well as anticipated future performance payments upon reaching commercial production milestones.
It’s important to note that the transaction involving Currie Rose and Kotai Energy is considered a related party transaction under the Multilateral Instrument 61-101. As Michael Griffiths, the President and CEO of Currie Rose, is also a shareholder of Kotai Energy, the company is exempt from certain formal valuation and minority shareholder approval requirements. The transaction was approved by independent directors of the company.
In addition, Nicole Morcombe, co-founder of Kotai Energy, has been appointed as a director of Currie Rose and granted 4,500,000 stock options in the company.
The transaction has received conditional approval from the TSX Venture Exchange (TSXV) and is subject to final approval. Disinterested shareholder approval has been obtained through a written consent resolution, ensuring compliance with TSXV policies.
The acquisition of Kotai Energy positions Currie Rose Resources Inc. to leverage the advancements in hydrogen technologies and contribute to the development of a sustainable hydrogen supply chain. As the world increasingly embraces clean energy solutions, the potential impact of this acquisition could be significant. However, challenges such as infrastructure development, cost competitiveness, and scalability remain important factors to address for the successful implementation and widespread adoption of hydrogen as an alternative energy source.
