Lignol announces investment and technology collaboration with Territory Biofuels

(Lignol) has subscribed for convertible notes with a principal value of US$1.2 million issued by Territory Biofuels Ltd. (TBF) and signed a technology collaboration agreement (TCA) that includes a package of technical and further assistance to aid in the restart of TBF’s 150 million liters per year biodiesel plant and glycerin refinery located in Darwin, Australia.
The terms of the notes provide for conversion into an equity position for LEC of between 20% and 40% in TBF, depending on a range of criteria related to the development of the Darwin facility. This investment will be funded, in part, from Lignol’s recently announced line of credit from its major shareholder, Difference Capital Funding Ltd.
The terms of the TCA provide for technical assistance from Lignol and its partners with respect to both the restart of the facility and the potential integration of new pre-treatment technologies and catalysts to facilitate the processing of a broad range of low cost feedstocks.
Territory Biofuels owns a large-scale biorefining facility located in Darwin, Northern Territory, Australia, which includes a Lurgi-designed biodiesel plant and the only glycerin refinery in Australia. Lignol Energy owns 100% of the issued and voting shares of Lignol Innovations Ltd. (LIL) and has interest in Australian Renewable Fuels Ltd.
 
(March 11, 2013)