ASX-listed company, Sydney-based IoT Group began a mining operation if it can get a written off coal plant up and running again. According to the announcement and of the Australian Securities Exchange (ASX) on Monday, the IoT Group displayed its subsidiary IoT blockchain had signed a ‘conditional binding terms sheet’ with Royalti Blockchain Group, the Australian reseller of bitcoin mining hardware giant Bitfury.
The above mentioned contract sees the IoT Group envisioning the development of a ‘Blockchain Applications Complex’ (BAC) in Hunter Valley, operated by the Redbank power station – a decommissioned coal plant. IoT group cooperated Hunter Energy in the endeavor with the latter working to acquire the power station to build the supposed mining center across two hectares. If effective, the IoT Group declares it will be able to draw energy at wholesale prices from the power station.
The deal is offered to be over AUD$190 million, although disclosure compliance rules see no details of the figure present in the official ASX announcement. The agreement affirms that Royalti would install its Bitfury mining hardware at the facility provided by the IoT Group, alongside 20 megawatts of power for at least five years at 11 cents per KWh. Retail differs, in comparison, cost between 30c to 45c/KWh.
Investors should note that the Terms sheet is subject to and conditional upon the satisfaction or waiver of certain conditions precedent, including the completion by Hunter Energy of its proposed acquisition of all right, title and interest in the Redbank Power Station to the absolute satisfaction of IoT…If Hunter does not complete its acquisition…or if competition does not occur under the terms sheet…the transaction…will not proceed.
The announcement claimed that the terms for a legally binding Power Purchase Agreement will take place no later than October 1, 2018.