VANCOUVER, May 6, 2013 /CNW/ - Lignol Energy Corporation
(TSXV: LEC) ("LEC" or "the Company"), a leading technology company
in the advanced biofuels and renewable chemicals sectors, today
announced that it has provided a A$500,000 loan to Territory Biofuels Limited
("TBF"), in exchange for receiving 2.5 million stock options from
TBF, making LEC the majority shareholder of TBF, on a fully diluted
basis with a 51.9% shareholding.
LEC has provided an interest free, non-recourse
loan to TBF in the principal amount of A$500,000 which is repayable on January 15, 2014 (the "Loan"). In consideration
for LEC providing the Loan, TBF will issue common stock options to
LEC exercisable up until June 15,
2015 (the "TBF Options"). The issuance of the TBF Options
are subject to certain undertakings by LEC, which are expected to
be fulfilled on or before May 15,
2013.
Further to the Company's news release dated
April 17, 2013, the convertible notes
with a principle value of A$1.18
million held by the Company and issued by TBF were converted
into common shares, which made LEC the largest shareholder in TBF
with a 40% fully diluted equity stake at that time. With the
issuance of the additional TBF Options, LEC is expected to have a
projected 51.9% stake on a fully diluted basis.
About Territory Biofuels Limited
("TBF")
TBF owns a large scale biorefining facility
located in Darwin, Northern Territory, Australia, which includes a Lurgi designed
biodiesel plant and the only glycerine refinery in Australia. The facility was commissioned
in 2008 at a cost of A$80 million,
along with 38 million litres of related tankage, now leased by
TBF. The biodiesel plant is the largest in Australia with a maximum rated capacity of 150
million litres per year. Originally built to run on
food-grade vegetable oil, the plant was shut down in 2009 due to
feedstock constraints. TBF intends to restart the existing
facility utilizing feedstocks such as tallow and used cooking oil
and then plans to integrate new feedstock pre-treatment
technologies and catalysts to process a broader range of feedstocks
such as lower quality tallow and palm sludge oil; a waste product
from palm oil mill extraction. TBF has established trading
relationships with its shipping, off-take and feedstock partners
which it expects will allow it to profitably start up and operate
the facility. Two LEC executive officers and directors, Mr.
Ross MacLachlan and Mr. Stephen Morris have been appointed directors of
TBF with Mr. MacLachlan also having assumed the role of Chairman of
TBF.
About Lignol Energy Corporation
("LEC")
LEC (TSXV: LEC) owns 100% of the issued and
voting shares of Lignol Innovations Ltd. ("LIL") and has interests
in both Australian Renewable Fuels Ltd. (ASX: ARW) ("ARW") and
TBF. LEC also intends to invest in, or otherwise obtain,
equity interests in energy related projects which have synergies
with the Company and have the potential to generate near term cash
flow.
LIL is a leading technology company in the
advanced biofuels and renewable chemicals sector undertaking the
development of biorefining technologies for the production of
advanced biofuels, including fuel-grade ethanol, and other
renewable chemicals from non-food cellulosic biomass feedstocks.
LIL's modified solvent based pre-treatment technology facilitates
the rapid, high-yield conversion of cellulose to ethanol and the
production of value-added biochemical co-products, including high
purity HP-LTM lignin. HP-LTM lignin
represents a new class of high purity lignin extractives (and their
subsequent derivatives) which can be engineered to meet the
chemical properties and functional requirements of a range of
industrial applications that until now has not been possible with
traditional lignin by-products generated from other processes. LIL
is executing on its development plan through strategic partnerships
to further develop and integrate its core technologies on a
commercial scale. For more information please visit Lignol's
website at www.lignol.ca.
Caution concerning forward-looking
statements:
Certain statements contained in this document
may constitute forward-looking information within the meaning of
applicable securities laws. Such forward-looking statements or
information include, without limitation, statements or information
about LEC's ability to fulfill certain undertakings related to a
loan LEC to be provided to TBF and TBF's ability to repay the loan,
LEC's ability to meet the obligations imposed with respect to the
2.5 million options received of TBF, LEC's ability to exercise its
TBF stock options in order maintain and or increase its equity
stake in TBF, TBF's ability to finance, restart and profitably
operate its 150 million litre per year biodiesel plant and
glycerine refinery, TBF's ability to work with strong commercial
partnerships and to become a major regional player in the biodiesel
market in the Pacific Rim, TBF's
ability to integrate new pretreatment technologies and catalysts to
facilitate the processing of a broad range of lower cost
feedstocks, the successful outcome of projects undertaken under the
Technology Collaboration Agreement between LEC and TBF, LEC's
ability to continue as a going concern and to raise additional
financing to fund the operations of LEC and LIL and to support the
financing requirements of TBF, LEC's ability to invest in, or
otherwise obtain, equity interests in energy related projects which
have technical and commercial synergies with the Company and which
have the potential to generate future dividends and near term cash
flow, the development status of LIL's fully integrated pilot scale
biorefinery in Burnaby, British
Columbia, the planning and development of a commercial
plant, LIL's ability to complete project deliverables which are
funded in part by government agencies, obtaining strategic
partnership investments and government funding for initial
commercial projects. Often, but not always, forward looking
statements or information can be identified by the use of words
such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes" or variations
of such words and phrases or words and phrases that state or
indicate that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
Such statements or information reflect LEC's
current views with respect to future events and are subject to
certain risks, uncertainties and assumptions including, without
limitation, our ability to establish the validity of LIL's
technology at the fully integrated biorefinery pilot plant scale,
LIL's ability to satisfy the conditions of existing government
grants and to obtain new additional grants, our ability to continue
to finance our operations and to finance and complete the
development of a commercial project, LIL's ability to work with
Novozymes to produce cellulosic ethanol at production costs
competitive with gasoline and corn ethanol, LIL's ability to
develop products and to obtain off-take agreements, LIL's ability
to obtain requisite regulatory approvals and its ability to enter
into agreements with strategic partners on terms acceptable to us,
LEC's ability to influence the strategy, operations and financial
performance of ARW or TBF, the reliance on publically available
information of ARW in the Company's evaluation of its acquisition
of shares in ARW, the potential inability to divest the ARW
ordinary shares due to modest trading volumes and the inability to
divest the TBF ordinary shares, the cost of any future ARW capital
investment, the fluctuation of biodiesel and feedstock prices on
ARW and TBF, the effect on ARW and TBF of changes in government
policy relating to the environment, and incentives for renewable
fuels, the ability of ARW and TBF to generate cash flow and pay
dividends, and the ability of ARW and TBF to market their products
overseas and to meet relevant regulatory requirements. Many factors
could cause LEC's actual results, performance or achievements to be
materially different from any future results, performance or
achievements that may be expressed or implied by such
forward-looking statements or information, including among other
things, the technological challenges that remain to be surpassed in
obtaining the necessary operating data from LIL's fully integrated
biorefinery pilot plant that is required prior to completing the
next scale-up of the technology, financial market conditions which
will impact our ability to finance our operations and to finance
the construction and operation of a commercial plant, the price of
gasoline and demand for ethanol, the market pricing and demand for
renewable chemicals, risks relating to the protection of LIL's core
technology from infringement and those risk factors which are
discussed elsewhere in documents that LEC files from time to time
with securities regulatory authorities. Should one or more of these
risks or uncertainties materialize, or should assumptions
underlying the forward-looking statements or information prove
incorrect, actual results may vary materially from those described
herein as intended planned, anticipated, believed, estimated or
expected. Except as required by law, the Company expressly
disclaims any intention or obligation to update or revise any
forward looking statements and information whether as a result of
new information, future events or otherwise. All written and oral
forward-looking statements and information attributable to us or
persons acting on our behalf are expressly qualified in their
entirety by the foregoing cautionary statements.
SOURCE Lignol Energy Corporation