Lignol consolidates majority shareholding of Territory Biofuels, with plans to re-start the largest biodiesel refinery in Australia

Lignol Energy Corporation (LEC), a leading technology company in the advanced biofuels and renewable chemicals sectors, has agreed to acquire an additional 2.67 million shares of Territory Biofuels Limited for A$1 million (US$966,463) under a TBF private placement offering transaction, which also provides for the further issuance of approximately 0.25 million shares of TBF to other shareholders of TBF.
Upon completion, LEC will become the majority shareholder with approximately 56% of the issued shares of TBF and 60% 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. This is an important milestone for our company and represents the potential for us to accelerate our transition to commercial operations with a majority equity stake in a world scale biofuels project.”
At full capacity, the Darwin refinery will be capable of producing up to 150 million liters 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.