Lignol acquires majority sharehold of Territory Biofuels
May 27, 2013
By
Jayson Koblun
May 27, 2013, Vancouver B.C. - Lignol Energy Corporation (LEC) announced that it will acquire an additional 2.67 million shares of Territory Biofuels Limited (TBF) for $1 million, making it the majority shareholder.
The transaction
also provides for the issuance of approximately 250,000 shares of TBF to other
shareholders of TBF. LEC will become the majority shareholder with
approximately 56 per cent of the issued shares of TBF and 60 per cent on a
fully diluted basis.
"We
are excited to be working with the TBF team and adding our support as the
majority shareholder in planning the re-start of the Darwin refinery",
said Ross MacLachlan, CEO and Chairman of LEC. "Our goal is to have the refinery
come back on line in Q4 2013, and incorporate upgrades to process lower cost
feedstocks that will enhance profitability in 2014."
At full
capacity the Darwin refinery will be capable of producing up to 150 million
litres of biodiesel per year. The facility also includes the only glycerine
refinery in Australia. Crude glycerine is a bi-product waste stream of
most biodiesel plants, which can be upgraded to a refined form of glycerine
with attractive margins and financial returns.
As a result of
LEC's becoming the majority shareholder, Difference Capital Funding Inc. has
agreed to assist LEC in funding this investment by increasing its existing line
of credit established earlier this year by $1 million to $6 million under
similar terms to the existing facility.
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