17 October 2018
Protean Energy Ltd (Protean, POW
or the Company
) is pleased to advise that it has entered into an agreement with DST Co Ltd (DST
) through which the Company will acquire an additional 10% ownership in subsidiary KORID Energy Co Ltd (KORID
This follows confirmation by KORID of an AU$3 million funding commitment from the Korean Institute of Energy Technology Evaluation and Planning (KETEP
KORID has, as advised to ASX on 19/09/2018
, been awarded approximately AU$3 million in funding over 3 years from KETEP, for its part in a significant multiparty 1MW vanadium redox flow battery trial project in Korea.
The trial project, with total funding of approximately AU$10 million from KETEP, is aiming to develop an industry standard for vanadium batteries in Korea, by bringing several participants together.
It's anticipated the trial project will double the energy density of vanadium electrolyte, which could potentially reduce the physical footprint of the V-KOR battery solution, enabling further scaling of the technology.
Protean Energy Specialist New Energy Expert Scott Davis said the company was pleased to have increased its ownership stake in KORID during an exciting time for the company and strong growth in the Battery Energy market globally.
"KORID has made significant technological advancements recently and its selection for such a nationally significant project in South Korea was further validation of this," Mr Davis said.
"This increased stake in KORID gives Protean Energy a controlling interest in the V-KOR battery technology, positioning the company at the forefront of innovation in the global battery storage market."
The global vanadium market is expected to grow at a CAGR of 11.24% during the 2017-2021 period, with vanadium redox flow batteries a key driver. 
"There is enormous potential emerging in the vanadium battery storage market and Protean is now well placed to capitalise on further advancements in this technology as well as commercial opportunities, with the V-KOR battery solution a leader in this space," Mr Davis said.
An Australian trial of the V-KOR battery solution is also under way at an industrial site in O'Connor, WA.
The increased ownership stake in KORID will also facilitate the sale of Protean's 1,160,870 shares in KOSDAQ-listed DST (currently valued at about AU$1.524m 
) at the Volume-Weighted Average Price (VWAP) for the 10 traded days prior to completion.
"With $1.5 million in additional funding from the sale of DST, a further $3 million from the recent KETEP grant and cash balance of over $2 million, Protean is in a strong position to progress quickly towards commercialisation of our unique vanadium battery solution," Protean Director Bevan Tarratt said.
"We are pleased to now have further control over the direction of KORID and believe the next 12 months hold tremendous opportunity in the large scale battery energy storage market."
In consideration for the additional 10% of equity in KORID, the Company will issue the equivalent of AU$750,000 worth of stock at a deemed issue price of the greater of the 10 traded day VWAP for POW shares prior to completion or AU$0.03 per share. The transaction will result in Protean securing control of KORID.
Protean now has the right to appoint the Chairman and Managing Director of KORID.
Protean and DST also entered into variation letter deeds (Deed/s
) to the JV agreements covering both KORID and Stonehenge Korea Ltd (SHK
), owner of the Daejon vanadium/uranium projects.
The variation Deed to the SHK agreement confirms that, as a result of completing an updated mineral resource based on accessing and testing core held by the Korean Institute of Geoscience and Minerals (KIGAM
), the project has now progressed to Stage 2 (feasibility) under the JV agreement.
The Deed confirms that an estimated initial spend of $237,373 of the Stage 2 expenditure will be funded by DST. Thereafter, the JV expenditure will be shared 50/50 as per the existing JV agreement.
The variation Deed to the KORID shareholders agreement outlines that the Company will provide an estimated $456,835 to KORID, being 50% of the estimated funding previously provided by DST to fund KORID, within 14 days of the date that the DST Shares are sold.
The Company expects to satisfy this expenditure obligation from funds received when its DST shares are sold. Thereafter, JV expenditure is intended to be shared 60/40 in accordance with the new shareholdings. 
TechNavio. Global Vanadium Market 2017-2021.
Research and Markets. November 2017. https://www.researchandmarkets.com/reports/4424936/global-vanadium-market-2017-2021 
Price is based on the last traded day price of DST shares (KRW1,070) prior to the date of this announcement and an average exchange
rate of KRW815 to AUD1 being the average over the 90 days prior to this announcement.