By Maria Church
Aug. 31, 2016 -BIOX Corporation announced that in connection with its previously announced acquisition of a 50 million litre nameplate capacity biodiesel facility in Sombra, Ont., the company has obtained a $1.8 million credit facility from Farm Credit Canada. The credit facility is secured by a mortgage on the facility in Sombra is for a term of one year and bears interest at a rate of 4.75% per annum.
The Sombra facility is located on a 21-acre facility near Sarnia, Ont., with excellent logistics, including on site rail. Originally constructed in 2009, the facility has not achieved nameplate capacity due to working capital and market challenges, and is currently not in production.
The funds from the credit facility form part of the company's anticipated expenditure of an additional $5.0 million over the next nine months for upgrades to the facility that will improve the facility's efficiency and enable the use of a broader range of low carbon intensity feedstocks, such as animal fats and recycled cooking oils. The company expects the facility to be in production in time for the 2017 blend season in Ontario, during the second quarter of calendar 2017.
BIOX is a renewable energy company that owns 287.5 million litres of nameplate biodiesel production capacity at plants located in southern Ontario and Houston, Texas. BIOX has an innovative, proprietary and patented production process that is capable of producing the highest quality, renewable, clean burning and biodegradable biodiesel fuel utilizing a variety of feedstocks - from pure seed oils to animal fats to recovered vegetable oils with no change to the production process. BIOX's high quality biodiesel fuel meets North American (ASTM D-6751) quality standards.